You need to go back to Bernanke's speeches when he said Americans don't save enough.....
You need to save more so it will be worth much less when you actually need to use it.
Or something like that....
BUBBLE ben bernanke now keeping rates low into late 2014, WTF!!!
- Thread starter S2007S
- Start date
You need to go back to Bernanke's speeches when he said Americans don't save enough.....
You need to save more so it will be worth much less when you actually need to use it.
Or something like that....
Quote from Scataphagos:
Now we know the TRUE function of the Fed... to allow the banks to make stupidly risky, leveraged bets with depositors' money...
Hmmm... sounds almost like the banks are... MF Global..... :eek:
Quote from MarketMasher:
You need to go back to Bernanke's speeches when he said Americans don't save enough.....
You need to save more so it will be worth much less when you actually need to use it.
Or something like that....
Exactly! WTF. The public doesn't save enough? Why should they, when they get 0% interest on their savings and their money is eroding away to inflation. The only logical thing to do is take out cheap money on loan and blow it as fast as you can. But I kind of think that is what they are getting after anyways.
There is no incentive to save here in america the reason is that most of the entire population in the US only knows how to consume, the only ones that are great at saving from what I have read are the Chinese.
Aside from that why would they give you the incentive to save when they know 70% of the US GDP comes from consumer spending.
Aside from that why would they give you the incentive to save when they know 70% of the US GDP comes from consumer spending.
It's not in the short term interest of the economy for the public to save. If banks think rates will be higher in the future and the public is saving then all the money will be left in checking accounts with banks then sitting waiting for higher rates to lend at.
Instead everyone knows that higher rates aren't in the cards and people will start spending and investing and banks will start lending. The velocity of money will improve and we can start seeing real growth.
Instead everyone knows that higher rates aren't in the cards and people will start spending and investing and banks will start lending. The velocity of money will improve and we can start seeing real growth.
M
morganist
Japan too. They have high public debt due to this.