I guess the banki interest rate is very low for our accounts...but still better than my ex-wife..who had no interest for 15 years.

Well said - we are caught in a vice. No interest from the banks, but the other investments are very risky considering we're peering over the cliff and looking at recession. I think the banks lend to the govt. at about 3% (risk free) and give us about 0. 2%.

At least we live in "interesting" times. Supposedly an old Chinese curse.

A thief by any other name. . .Congressperson, e.g.

I remember this old OS! Timely use of it Patrick! :)

Federal Reserve Board, under pressure from Congress and Administration, has been keeping wholesale rates at about zero in an attempt to prop up an economy still struggling from previous Gov't interventions, such as passing laws creating the sub-prime mortgage market, then forcing banks to lend to the unqualified.
  http://www.amiright.com/parody/misc/williamshakespearehamletlordpolonius0.shtml

@ Timmy: Only for terms of 30 years, and that's been below 2.5% at times during the past year. Fixed-rate bonds like that carry considerable inflation risk: the bank or other buyer will get paid in dollars worth far less than they are today; also, if rates five years from now are 6% or 8%, that 3% looks pretty stinky.
  Currently, 1-yr Treasuries yield 0.15%, which is less than that 0.2% you're getting. A 5-yr Treasury presently yields 0.77%. You can get 0.75% from online banks without having to tie up your money for five years, and with the ability to receive higher rates should they rise in the future.

Historical bank spread (cost of funds vs. rates charged) is about 3%. For example, if they paid 3% on savings accounts, they would charge 6% on a home loan. That has to cover their salaries, rent, other business expenses, the losses from loans that go sour, etc., and what is left, if any, is the return on their and their shareholders' investment. So the current situation is not making them richer than they would under "normal" times.


Banks are not without blame in certain things, but it's getting really tiresome seeing lenders blamed for everything, especially when the real culprit is the Fed, the Congress, and the various POTUS.

One of the conspiracy theories is that the monolith is holding down interest rates to force savers to spend their money before it turns into Weimar toilet paper.. Just like everyone buying up AR-15 rifles for fear they won't be able to get one next month. Holding down interest rates does make it cheaper for the feds to pay back their debts, but, it also tends to encourage more irresponsible borrowing. Just like the housing crunch. Congress is no different, in terms of financial responsibility, than the insolvent borrowers they encouraged to take on home loans they couldn't repay. That's why Congress caters to the irresponsible, they share a cultural affinity.

"Never ascribe to malice that which can be explained by stupidity". (or political self-interest).

Agree with the previous reply, except for the conspiracy part. As usual, it's not a conspiracy; it's just a bunch of pols trying to get re-elected, who screw things up more to try to fix their previous screw-ups, rather than bite some ugly (.30-cal.) bullets and do a real cure.
  Last sentence was a zinger. However, a large part is that the irresponsible voters far outnumber the responsible ones; hence, irresponsible pols, who promise things we can't afford. get elected.