Money Lesson #128: The Federal Reserve Board, (THE FED) is Always late top the party: The earn very good money in the investment world you have to stay ahead of them.
WOW! WOW! GREAT JOB Numbers:
Last month, February 2015, The US Economy add over 295,000 new Jobs! Over 3 million in a year! Unemployment is now at 5.5% Please click the link below to see all the data
This kind of data is solid proof that the American economy is fully recovered. Time for the Fed to get out of the way and raise interest rates NOW!
The people who are currently suffering the most from this very long period of sky-high rates are the millions of people who cannot invest in the stock or real estate market. They are compelled to keep their meager funds in checking/savings accounts that are paying from zero to less than one percent (1%).
There are millions of retirees who have to play it safe by keeping their money in CDs and Money Markets Accounts that are yielding next to nothing. And if you add the taxes that they have to pay, plus inflation, they are losing purchasing power.
Currently, only Big Banks, the Super wealthy, and Mega Corporations are the only ones benefitting by keeping interest rates so low. Big banks are taking the millions of retirees’ dollars and paying them very little while using that same money to lend to only to the very wealthy and the mega-corporation at a higher rates.
Microsoft and Apple who are currently borrowing tens of billions, despite the fact that these two firms have a combined $121 billion in cash that they disclosed on their most recent balance sheet.
The history of the FED is that they are always too late or too early–they have NEVER gotten it right. If they knew what they were doing, we would never have had the housing bubble that caused the recession that started in 2008 in the first place. Did they step in the first place? No!
Taking too long to raise interest rates is causing new bubbles in Stocks and the Housing Market. Remember Alan Greenspan, the former Fed Chairperson who raised interest rate eleven times, trying to cool down the US economy? He just kept his foot on the gas and eventually rates got so high that the US economy did not just slow down–it collapsed.
Yes, the recession is over, and the Fed needs to learn from their past mistakes. Time to move on and raise interest rates, this will take help to keep the stock market and the housing market from over inflating and creating future problems.
YES!! NOTE to The Federal Reserve Board (THE FED): It is time to start raising interest rates