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Forget Cyprus, Nobody Is Stealing from Depositors More than Bernanke

katsung47

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Forget Cyprus, Nobody Is Stealing from Depositors More than Bernanke
By Bernice Napach | Daily Ticker – 3/21/2013
“Nobody is stealing more money from bankdepositors than Ben Bernanke,” Rickards tells The Daily Ticker. Bernanke'sdoing that, Rickards says, by maintaining interest rates near zero.

Related: There are No Bubbles, QE is Working

“At this stage of a recovery normalized interestrates should be around 2-3%,” says Rickards. “Apply that 2-3%…to the entiremulti-trillion-dollar deposit base of the United States of America and that’s a$400-billion per year wealth transfer from savers to bankers so they can paythemselves bigger bonuses or make crazy bets.” Over time, Rickards says, thatwealth transfer could reach $1 trillion.

Rickards says zero interest rates are just oneway the Fed is fleecing depositors. Others include increasing inflation, whichBernanke is trying to do, and taxing deposits like Cyprus is pushing for.“Bernanke is stealing more money from depositors than Cyprus is... lootingeveryday Americans—teachers, firemen and retirees,” says Rickards.
Forget Cyprus, Nobody Is Stealing from Depositors More than Bernanke | Daily Ticker - Yahoo! Finance
 
Thank you for posting this. I agree 100%.

Forget Cyprus, Nobody Is Stealing from Depositors More than Bernanke
By Bernice Napach | Daily Ticker – 3/21/2013
“Nobody is stealing more money from bankdepositors than Ben Bernanke,” Rickards tells The Daily Ticker. Bernanke'sdoing that, Rickards says, by maintaining interest rates near zero.

Related: There are No Bubbles, QE is Working

“At this stage of a recovery normalized interestrates should be around 2-3%,” says Rickards. “Apply that 2-3%…to the entiremulti-trillion-dollar deposit base of the United States of America and that’s a$400-billion per year wealth transfer from savers to bankers so they can paythemselves bigger bonuses or make crazy bets.” Over time, Rickards says, thatwealth transfer could reach $1 trillion.

Rickards says zero interest rates are just oneway the Fed is fleecing depositors. Others include increasing inflation, whichBernanke is trying to do, and taxing deposits like Cyprus is pushing for.“Bernanke is stealing more money from depositors than Cyprus is... lootingeveryday Americans—teachers, firemen and retirees,” says Rickards.
Forget Cyprus, Nobody Is Stealing from Depositors More than Bernanke | Daily Ticker - Yahoo! Finance
 
Bernanke is a crook. The most ironic thing of all of it is the statists who complain about the rich screwing the country wholeheartedly support the federal reserve.
 
I've loved the .1% on my savings account.
 
what of bernake's actions/inactions would you have done differently?
 
I've loved the .1% on my savings account.

Yea and why do you think the Cyprus banking industry was so popular?... they had 2+% savings rate there.
 
Forget Cyprus, Nobody Is Stealing from Depositors More than Bernanke
By Bernice Napach | Daily Ticker – 3/21/2013
“Nobody is stealing more money from bankdepositors than Ben Bernanke,” Rickards tells The Daily Ticker. Bernanke'sdoing that, Rickards says, by maintaining interest rates near zero.

Related: There are No Bubbles, QE is Working

“At this stage of a recovery normalized interestrates should be around 2-3%,” says Rickards. “Apply that 2-3%…to the entiremulti-trillion-dollar deposit base of the United States of America and that’s a$400-billion per year wealth transfer from savers to bankers so they can paythemselves bigger bonuses or make crazy bets.” Over time, Rickards says, thatwealth transfer could reach $1 trillion.

Rickards says zero interest rates are just oneway the Fed is fleecing depositors. Others include increasing inflation, whichBernanke is trying to do, and taxing deposits like Cyprus is pushing for.“Bernanke is stealing more money from depositors than Cyprus is... lootingeveryday Americans—teachers, firemen and retirees,” says Rickards.
Forget Cyprus, Nobody Is Stealing from Depositors More than Bernanke | Daily Ticker - Yahoo! Finance

I don't disagree with anything you've said here but it must be remembered that significantly large parts of the population in North America hold significant debt, much of it in housing related to mortgages and lines of credit etc., plus auto debt, credit card debt and others. A rise in interest rates in a struggling economy could send millions into unsustainable financial circumstances.
 
Just a stupid question which of the two parties do we elect who will actually do something about problems in our overly corrupt banking system? The way I see it in the past 32 years we have had 8 years of reagan, 4 years of bush Sr., 8 years of clinton, 8 years of bush jr., and 4 years of Obama going on 8. Not to mention congressional shifts back and forth during those times yet the only thing we have gotten is consistent deregulation which allows for things like this to happen. Actually stopping this would require regulation which conservative capitalists think is horrible, and liberals just seem to do as effectively as a camp counselor at crystal lake. So the two sides have created a fight over this which neither side is actually working on solutions, they are just working on the fight and letting the BS go on and on and on. And we have the third party, libertarians, and the fourth party of tea who both want smaller government and few regulations so that does not help.

The solution is somewhat simple, but relatively impossible. Somehow you would have to get enough politicians in at the federal level who had the know how to fix the system, and the lack of ties to big money to get it done. Since the people who have the knowhow are also the people who tend to make the system, and the ones who fund the candidates i don't think there is much chance of that happening. not to mention the reality that most people are so caught up in the fight they don't care about solving the problem as long as they get to blame the other guy on their news commentary media. The great people who talk about rising up in revolt with their guns really are not going to ever do anything on that end either. So are there any real suggestions aside from elect "insert party here" despite the reality that party is an integral part of the problem?
 
Just a stupid question which of the two parties do we elect who will actually do something about problems in our overly corrupt banking system? The way I see it in the past 32 years we have had 8 years of reagan, 4 years of bush Sr., 8 years of clinton, 8 years of bush jr., and 4 years of Obama going on 8. Not to mention congressional shifts back and forth during those times yet the only thing we have gotten is consistent deregulation which allows for things like this to happen. Actually stopping this would require regulation which conservative capitalists think is horrible, and liberals just seem to do as effectively as a camp counselor at crystal lake. So the two sides have created a fight over this which neither side is actually working on solutions, they are just working on the fight and letting the BS go on and on and on. And we have the third party, libertarians, and the fourth party of tea who both want smaller government and few regulations so that does not help.

The solution is somewhat simple, but relatively impossible. Somehow you would have to get enough politicians in at the federal level who had the know how to fix the system, and the lack of ties to big money to get it done. Since the people who have the knowhow are also the people who tend to make the system, and the ones who fund the candidates i don't think there is much chance of that happening. not to mention the reality that most people are so caught up in the fight they don't care about solving the problem as long as they get to blame the other guy on their news commentary media. The great people who talk about rising up in revolt with their guns really are not going to ever do anything on that end either. So are there any real suggestions aside from elect "insert party here" despite the reality that party is an integral part of the problem?

The FED interest rates have never been regulated, except by the FED itself. Why don't you stop drinking the kool-aid for a minute, for crying out loud.
 
Forget Cyprus, Nobody Is Stealing from Depositors More than Bernanke

no kidding. you should have seen the interest on the money I've managed to save in the past five years or so. the account is significant. the interest? not enough to buy a fifth of anything. I have to move that money soon, because it's almost an insult.
 
I've loved the .1% on my savings account.



Don't spend it all in one place.

If you spread it around it helps the economy more.:lol:



"Reasonable people adapt themselves to the world. Unreasonable people attempt to adapt the world to themselves. All progress, therefore, depends on unreasonable people." ~ George Bernard Shaw
 
no kidding. you should have seen the interest on the money I've managed to save in the past five years or so. the account is significant. the interest? not enough to buy a fifth of anything. I have to move that money soon, because it's almost an insult.



Check out the Vanguard Healthcare Fund. I'm no longer in the fund, most of my money is in European real estate right now, but I made a lot of money with this fund.
 
Bernanke is a crook.




Show us the proof.

If you do have proof, pass it on to the FBI at FBI — Homepage.

If you don't have proof, you're just running your mouth.



"Reasonable people adapt themselves to the world. Unreasonable people attempt to adapt the world to themselves. All progress, therefore, depends on unreasonable people." ~ George Bernard Shaw
 
what of bernake's actions/inactions would you have done differently?




There are lots of critics in this world, but most don't have an idea that's actually better than what they are criticizing.




"Before you criticize a man you should walk a mile in his shoes. That way, if he gets violently upset, you'll be a mile away - with his shoes." ~ The Talmud
 
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Check out the Vanguard Healthcare Fund. I'm no longer in the fund, most of my money is in European real estate right now, but I made a lot of money with this fund.

will do. thanks for the tip. i'm considering all of my options now that i have received indications that my job might be a bit more secure than i had thought. unfettered access to my savings isn't worth the money i'm losing in interest.
 
I don't disagree with anything you've said here but it must be remembered that significantly large parts of the population in North America hold significant debt, much of it in housing related to mortgages and lines of credit etc., plus auto debt, credit card debt and others. A rise in interest rates in a struggling economy could send millions into unsustainable financial circumstances.

Good morning, CJ.

I agree with your post.

On the other side of the coin, however, at the last Fed meeting a few days ago, it was interesting to note that KC Fed Governor Esther George warned that keeping interest rates near zero introduces the risk of bubbles. She was the lone dissenter on the current policy, and argued that the Fed's current course produces "financial instability," and cited agricultural land and high-yield loans as signaling market imbalances.

It looks like there are valid points on each side of the argument, and boils down to...do we pay now or later?
 
Good morning, CJ.

I agree with your post.

On the other side of the coin, however, at the last Fed meeting a few days ago, it was interesting to note that KC Fed Governor Esther George warned that keeping interest rates near zero introduces the risk of bubbles. She was the lone dissenter on the current policy, and argued that the Fed's current course produces "financial instability," and cited agricultural land and high-yield loans as signaling market imbalances.

It looks like there are valid points on each side of the argument, and boils down to...do we pay now or later?
what was the significance of the cited 'agricultural land'
 
I don't disagree with anything you've
said here but it must be remembered that significantly large parts of the population in North America hold significant debt, much of it in housing related to mortgages and lines of credit etc., plus auto debt, credit card debt and others. A rise in interest rates in a struggling economy could send millions into unsustainable financial circumstances.

Bernake has backed himself into a corner with QE.

The monetizing of our short term securities is primarily to make our debt servicable.

Just a 6% rise on Treasuries and we're adding another trillion to our yearly deficits.

If he stops, investors are going to bail on bonds and eventually the massive amount of liquidity will have to be dealt with which means higher interest rates.

This is what Liberals refuse to accept, that Bernakes actions and Obama's data manipulation is going to equal up to a lot of pain the next time a grown up is elected as President.

Its a good way to stifle future economies.
 
Bernake has backed himself into a corner with QE.

The monetizing of our short term securities is primarily to make our debt servicable.

Just a 6% rise on Treasuries and we're adding another trillion to our yearly deficits.

If he stops, investors are going to bail on bonds and eventually the massive amount of liquidity will have to be dealt with which means higher interest rates.

This is what Liberals refuse to accept, that Bernakes actions and Obama's data manipulation is going to equal up to a lot of pain the next time a grown up is elected as President.

Its a good way to stifle future economies.
why is excessive liquidity expected to drive interest rates upward?
 
what was the significance of the cited
'agricultural land'

Asset prices are being falsrly inflated with printed currency. Bond prices too.

Think about the consequences of that for a second.
 
what was the significance of the cited 'agricultural land'

Good morning, justabubba.

She didn't elaborate that I heard, but agricultural land is getting very pricey, because thousands of acres are apparently being gobbled up by large agribusinesses. Unfortunately, they then allow those lands to lie unused and fallow instead of growing food, which is going to mean ever rising costs for the consumer. I believe Humbolt made a reference the other day to exactly what he sees happening in his area. If he is on here this morning, perhaps he could explain further.
 
why is excessive liquidity expected to drive interest rates upward?


Excess liquidity equals high inflation, usually.

The Fed increases interest rates...usually...to bring that money back, pull it out of the market and they also lower banks reserves as a way to combat rising inflation.

Right now there is a threat of deflation and thats much harder to climb out of.

The pendulum swings both ways but all Bernakes pumping is doing is loading banks up with record reserves and boosting asset prices.

It's not having any substantial positive effect on the economy and one day it wi have to be addressed when we return to reality.
 
Excess liquidity equals high inflation, usually.

The Fed increases interest rates...usually...to bring that money back, pull it out of the market and they also lower banks reserves as a way to combat rising inflation.

Right now there is a threat of deflation and thats much harder to climb out of.

The pendulum swings both ways but all Bernakes pumping is doing is loading banks up with record reserves and boosting asset prices.

It's not having any substantial positive effect on the economy and one day it wi have to be addressed when we return to reality.
if there is excessive liquidity, then would that not indicate that the money was not in the market, such that it would not be there and in need to be pulled out with higher rates, as you purport?
 
if there is excessive liquidity, then would
that not indicate that the money was not in the market, such that it would not be there and in need to be pulled out with higher rates, as you purport?

There may not be alot of money in the ECONOMY but the markets and the banks are deluged with excess printed currency.

Its a great time to be a bank in America right now. Their Reserves are close to record levels and since 2008 they have been paid interest on those reserves by the FED. Thats the money a bank HAS to have on hand by law.

They are paying reserves to influence overnight rates wich also effect short term interest rates.

All that money in a healthy economy with REAL wealth in circulation will lead to high inflation, devaluing the wealth thats now being sat on by the investors and corporations.

So it's the FEDs job to control that and high interest rates and lowering bank reserves is how they accomplish it.

Investors now are taking advantage of whats basically free money in the finacial markets, BUT they are watching Bernake like a hawk for ANY indication that hes going to stop pumping.

This is why HE CANT STOP. Vicious cycle.

He knows the sell off and crash thats coming if he does.

Its surreal whats been done to prop up this Presidents destructive economic policies. It should be criminal.
 
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