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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: gpowell who wrote (24635)10/19/2004 12:23:10 AM
From: Mike JohnstonRead Replies (1) of 306849
 
In a Socialist system, the means of production and distribution are collectively owned. In practice, this means a central authority decides how and where resources are allocated, and consequently, which of societies wants and needs are satisfied.

What you have just described here is a definition of communism not socialism. There are countries like Sweden where means of production are privately owned however those countries are considered socialist because of very high tax rates ( up to 90%), significant welfare programs and government controlled health care and education. Some people even would go as far as to call France a socialist country.
Thus socialist state is a welfare state with a minority of means of production owned by the state ( power plants for example)high tax rates and transfer of wealth from rich to the poor.
Communism is a centrally planned system where majority of means of production are owned by the government.

How can banks pay below market rates for deposits?

Money market and 3 month and 6 month certificates of deposit yields are similar to t-bill yields which are very dependent and not that far from fed funds rate and fed funds is not a free market interest rate.
Those yields are significantly below inflation. There is not much choice if you want to move money somewhere else, you can go into the stock market or the overpriced bond market or you can go into foreign currencies.
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