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Economist’s are saying the Fed.Reserve may have no choice but to force a recession to control inflation….


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22 minutes ago, KirtFalcon said:

No problem, Plugs will just change the definition again to save us ....

They seem to like changing the definitions of words. I seem to recall a very famous book where something very similar happened. Things in that book were ungood for most people.

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17 hours ago, gamewatcher63 said:

https://finance.yahoo.com/news/fed-may-no-choice-tip-040838453.html
 

if Powell doesn’t do what is necessary then you know he is in the tank for Biden’s re-election….which we already know he is anyway 

 

 

no choice huh? The fed has no loyalty to any party. Funny how a private bank controls interest rates, but I'm sure they would have avoided this if it were possible years ago 😂😂😂😂😂

P.S. Just want to throw a little more gas on the fire. The U.S. is a corporation also. 

Edited by ctown81
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5 hours ago, ctown81 said:

no choice huh? The fed has no loyalty to any party. Funny how a private bank controls interest rates, but I'm sure they would have avoided this if it were possible years ago 😂😂😂😂😂

P.S. Just want to throw a little more gas on the fire. The U.S. is a corporation also. 

I may be dumb….but I’m not stupid…https://www.thegatewaypundit.com/2024/04/watch-federal-reserve-principal-economist-who-reveals-okeefe/

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On 4/13/2024 at 9:27 AM, ctown81 said:

no choice huh? The fed has no loyalty to any party. Funny how a private bank controls interest rates, but I'm sure they would have avoided this if it were possible years ago 😂😂😂😂😂

P.S. Just want to throw a little more gas on the fire. The U.S. is a corporation also. 

Private banks don't control minimum interest rates, that is also done by the Federal Reserve.  Banks are usually higher by 2% for borrowing and even higher based on credit scores as well as the amount of the loan.  If you've also noticed interest rates on savings have also rise, but they are usually about the same amount less (2%) than the amount to borrow.  That's how banks make money in addition to service fees that were once unheard of unless you had a minimum balance of what is now $1000 in your account at all times.  Many banks used to have free banking, but that has changed.  They would sell you checks, but you could get cheaper checks ordering them from a check service company.   

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13 hours ago, DaveTV1 said:

Private banks don't control minimum interest rates, that is also done by the Federal Reserve. 

The Federal Reserve is a private bank.

13 hours ago, DaveTV1 said:

That's how banks make money in addition to service fees that were once unheard of unless you had a minimum balance of what is now $1000 in your account at all times.  Many banks used to have free banking, but that has changed.  They would sell you checks, but you could get cheaper checks ordering them from a check service company.   

Let me ask you a question. When you really think about it, do you think charging fees and minimum balances are enough to sustain banks? I'll say this, your signature is worth a lot of money but I'm not sure any of you are ready for that rabbit trail. 

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47 minutes ago, ctown81 said:

The Federal Reserve is a private bank.

No, it isn't. The Federal Reserve itself isn't a bank.

Quote

Their corporate structure reflects the concurrent interests of the government and the member banks, but neither of these interests amounts to outright ownership.

https://en.wikipedia.org/wiki/Federal_Reserve_Bank

Quote

A Federal Reserve Bank is a regional bank of the Federal Reserve System, the central banking system of the United States. There are twelve in total, one for each of the twelve Federal Reserve Districts that were created by the Federal Reserve Act of 1913.[1]

 

Edited by Monte1076
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Let me correct myself. The 12 federal reserve banks within the federal reserve system are all private banks.  The Government appoints a board that overseas everything and reports back, but the board does not need any approval from the government in their decision making. 

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36 minutes ago, ctown81 said:

Let me correct myself. The 12 federal reserve banks within the federal reserve system are all private banks.  The Government appoints a board that overseas everything and reports back, but the board does not need any approval from the government in their decision making. 

Although the government could appoint the board that makes the decisions that the government wants them to make.

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1 hour ago, Monte1076 said:

Although the government could appoint the board that makes the decisions that the government wants them to make.

"perfect" world maybe but it's the banks who are really running things. 

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6 minutes ago, ctown81 said:

"perfect" world maybe but it's the banks who are really running things. 

Well, if the government appoints the board to oversee the 12 Federal Reserve banks, and this board makes decisions that affect those banks, couldn't you argue that it's possible that those board members are appointed with the implicit understanding to make the decisions that the government wants them to make?

It's like when the President nominates an AG or a justice. I'm not sure how it's that much different.

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On 4/13/2024 at 6:58 PM, Wild74 said:

Interest rates will continue to climb, until the fed can stop printing money inflation will continue to rise and my 401K will continue its disgusting spiral downward. 

While I understand interest rates and cost, why is you 401K continuing to spiral downward......My 403B (teachers 401K) in the first quarter this year is up 5.5% overall, and that is after last year being up over 7% overall. I have returned all the money that I lost during the pandemic plus. I hope you are watching your investment portfolio weekly at least. I move my money from fund to fund depending upon the economics of the nation. But at my age, about 65% of my investments are in Conservative funds, 20% in moderate, and still have 15% in aggressive funds.....which have done well over the past year and 1/2.....

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2 hours ago, DannyZuco said:

While I understand interest rates and cost, why is you 401K continuing to spiral downward......My 403B (teachers 401K) in the first quarter this year is up 5.5% overall, and that is after last year being up over 7% overall. I have returned all the money that I lost during the pandemic plus. I hope you are watching your investment portfolio weekly at least. I move my money from fund to fund depending upon the economics of the nation. But at my age, about 65% of my investments are in Conservative funds, 20% in moderate, and still have 15% in aggressive funds.....which have done well over the past year and 1/2.....

My 401K is run by Voya since I retired 90% of the fund is considered safe and 10% of the money is in the S&P 500 which does good when the stock market goes up, the majority is in bonds which also does good when interest rates drop the Stability fund makes money every day but has a set interest rate it makes about 500 dollars a month. The bond market is where I am taking a hit.  

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8 hours ago, ctown81 said:

The Federal Reserve is a private bank.

Let me ask you a question. When you really think about it, do you think charging fees and minimum balances are enough to sustain banks? I'll say this, your signature is worth a lot of money but I'm not sure any of you are ready for that rabbit trail. 

No, and that's why they charge a higher interest than what the Federal reserve sets for loans.  That used to be their moneymaker.  Free Checking has become a thing of the past.  Even with debit cards the banks receive .074% for debit card usage for credit cards it can be as high as 3.5% per transaction.  The way they made their money was on loans, and why it's so hard to get a loan for some people, because of the risk involved.  

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2 hours ago, DaveTV1 said:

No, and that's why they charge a higher interest than what the Federal reserve sets for loans.  That used to be their moneymaker.  Free Checking has become a thing of the past.  Even with debit cards the banks receive .074% for debit card usage for credit cards it can be as high as 3.5% per transaction.  The way they made their money was on loans, and why it's so hard to get a loan for some people, because of the risk involved.  

they make most of their money on the private side securitizing promissory notes. Very little risk for banks these days. They are immediately paid. 

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