No interest on your savings you decimate savers - there is no incentive to deposit money in any financial institution every one would feel safer to keep his money in a safe place or home
This will also encourage buying precious metals as a savings vehicle, the velocity of money will get worse and banks without deposits will not lend not to mention not earning a profit.
Most baby-boomer will switch to live of their savings and interest income - at zero interest the social responsibility only increases and Medicare expenses will spiral upwards as will social assistance for the elderly world wide.
I do not see the rational in lowering interest rates to zero. Japan is in this policy and it did not help their economy in any meaningful way - why would it be any different today worldwide?
The WS model in theory was supposed to encourage free enterprise and lift those with great ideas for great products that will improve our lives – unfortunate, it was penetrated by thieves and swindlers which turned the concept of the financial industry from helping corporation into a association / organization of thieves and swindlers who made money of money and other people saving driving them into misery. The concept proved to be, not to for the average human being - the human greed went unchecked and it fulfilled Lenin century old predictions.
The axis of evil has a new meaning today, and it starts with Goldman Sachs, JP Morgan, Morgan Stanley, Merrill Lynch, AIG, Lehman, Bank America.... etc. those are the real enemies of the US society who where and are destroying the social fabric of our societies - those are the institution that must be chased and destroyed and turned to dust with the same determination that we go after Al Qaida.
Please explain what in this world justifies the compensation of one person to be $70 million, for a year of work at Goldman Sachs, and later same firm to receive $10 billion tax payer assistance? what contribution to the society at large, did those people do?
Goldman Sachs is not alone all other financial institution are build on the same culture of thievery and swindle – those that do not adapt are ejected from “their” system that is geared to make money of money and not from true investing and assisting companies to grow and society to prosper.
During the last generation something went very wrong in the US society – the smartest and brightest people flocked to WS only to be educated and trained in the art of legal thievery and greed in pursuit of a better life which turned out to be a rat life – instead to be productive and creative and make our society great.
Would like to know how many talented people during the last few years dreamed of joining a manufacturing enterprise v. those lured by the sweet talk of wellbeing and riches emanating form the financial industry?
Where are the industrial achievements of the old days that revolutionized US industry and also the world, and made the US a beacon of hope and achievements to the nations?
Put the whole issue in perspective - how much a team of researches receive in compensation for developing a drug that improves people lives v. some snake oil traders in the financial system who live of your hard earned money and suck your blood only to dump "the general you" later after you are poor or remained close to penniless?
Unfortunate none in the present US political establishment including both presidential candidates even contemplates to deal with this problem which is at the roots of our present debacle, worse – Barack Obama surrounded himself with alumni of Goldman Sachs the worst of the pack of thieves and swindlers who use sweet talk and penetrated as moles our government to tip the formal fiscal policy toward their cohorts benefit
Yes they all advocate lower interest rates |
