US doubles interest rate on loans after banks and lenders complain!

So, people who have savings accounts get brutally screwed on the meager interest rates their savings earn -- but when banks and other lenders bitch to the government about the low interest rates they can charge on loans, they are allowed to DOUBLE THE INTEREST RATE! Snap!

Links:
https://www.foxbusiness.com/money/us-doubles-interest-rate-small-business-loans
https://www.wsj.com/articles/govern...on-sba-loans-after-banks-complain-11585867578

After Trump started bitching and raising hell about demanding that interest rates be cut toward zero in 2019, and constantly threatening to fire the Fed Chairman, the Fed did cut interest rates three times, and now has cut the interest rates again -- to zero -- which just TRASHES the earnings on ordinary people's savings accounts.

Oh, but when the big banks and other lenders don't like getting microscopic interest rates on their accounts, then the Trump Administration comes RIDING TO THE RESCUE! (in this case, with sleasebag Treasure Sec., Stevie Mnuchin, and some Republican talking-head head of the SBA, appointed by Trump).

All because the poor, wittle bankers don't think they're gonna make enough money on these loans. I've been complaining about this punishment of people for the crime of actually SAVE money, instead of blowing it in speculation on the stock markets. This is just another obvious example of the old saying that "some are more equal than others...."

 

I have 25K in a savings account and earned 1 cent of interest last quarter.

 

They doubled it from one half of one percent to one percent. And most of the money will be considered a grant and not a loan as long as it is used for payroll and expenses. Even if it stayed at 1% and you had to pay it back it is still an awesome benefit for small businesses.

 

They can charge anything they like as long as it is under the usury rate and as long as they can be competitive with other banks. In this case the government is wrong in dictating an interest rate. The government is also wrong in dropping the prime rate to zero. Most of what federal government does is wrong. No reason to be surprised.

At the pinnacle of government politics always takes precedence over everything else.

 

Lol...And yet, you say you will vote for the same crook again.
As I told you earlier, enjoy your penury. You have nobody to blame but yourself.

 

Its refreshing to see Trumps opposition take a sudden interest in "ordinary" people. Those who will tax you into poverty are troubled over meager percentage rates. Of course, you are paying the highest possible interest on your mortgage and car note, right? Those ordinary people appreciate it.

BTW, 1% on a business loan is great.

 

In all honesty, Joe, would Biden do even ONE thing differently concerning the interest rate that ordinary savers earn on their savings accounts in CD's at banks, S&L's, and credit unions...? If he would he should SING OUT and tell us! So far, all Biden has done is remind us that at some point, senility and foot-in-mouth stupidity should (SHOULD) eliminate a guy like him from politics....

If I vote for Trump again (IF), it will be out of the most pathetic kind of desperation -- not because he's my concept of an 'ideal'....

 

Bro you need to move that!

 

Yes I do. I wanted to get to 25K first. Any suggestions?

 

Not really, it's prolly not a good time to do anything with it unless you find a warehouse full of toilet paper or hand sanitizer

 

So, cool... I'm happy for people who get something they want. Now, how about people who have conscientiously and responsibly saved money and put it in savings accounts?! What do we get? A total screwing!

And, from the perspective of the nation's economy -- how does ballooning the Fed's balance sheet toward SIX TRILLION DOLLARS help the economy in the long run? The Fed had started to dismantle this monstrosity when it was a bit over four trillion dollars by raising interest rates in Q4, 2015. It was only a microscopic quarter-point at a time, but at least SANITY was re-entering the markets. Demand for loans and credit should (SHOULD) be the only criterion for what interest rates are -- it's known as a FREE-MARKET ECONOMY, which we had in a much greater degree until the Fed took over everything in August 2007.... NOW look at it! Demand for loans and credit are at an all-time high, but interest rates are at ZERO?! What the hell is going on here?

So, here comes Trump, already riding a wave of triumph with a huge, overvalued stock market to show for his three years in office, and what does he do...? He bullies, bitches, and raves that he wants European-style ZERO interest rates, and he starts threatening the Fed Chairman to do what he wants. Even before this 'virus' thing popped up out of nowhere, the Fed had cut interest rates on people's savings THREE TIMES, for no good reason at all!

Now the Fed has had to throw its shoulders into manufacturing imaginary money, again, and slashing rates to ZERO, ostensibly because of 'the virus'. Although cutting interest rates to ZERO isn't going to do anything to stop this virus! It doesn't care!

Thanks, Fed. Thanks, Donald Trump. If there was ANYBODY worth voting for in the whole damned Democrat Party, you, sir, would heading home at the end of next January! As it is, people who save money can look forward to being screwed by this Trump/Federal Reserve combine racket until January 20, 2025....

But, hey, lenders will be OK, because Trump will make sure to take good care of THEM, and give them what THEY want....

 

You ask an excellent question, and it is one that people are going to find answers to, right and wrong, over the next few months. I can see savers taking all their money OUT of banks, S&L's, and credit unions, just like so many have already done in foreign countries. Nobody is going to keep savings accounts in institutions that pay ZERO interest!

So, what's Trump's next move? Oh, he'll probably have his henchmen at the Fed 'print' a few dozen more imaginary trillions of dollars and stick them in the 'lending' institutions, just to prop them up -- because ordinary American middle-class savers will close out their accounts and be long gone!

 

Nonsense. You don't know what Biden will do. Neither do I. But I know that he can't be worse than trump on policy and no one is worse than trump on character. And as we are seeing during this crisis, character trumps ideology.
Your country deserves better than trump. And even if Biden is senile, he and his team will be better for America than another second of trump and his deplorable self-serving antics.

 

Well, Joe, rather than argue with you, I'd simply say that the onus is on Biden to open his unpredictable mouth and TELL the rest of us what he would do.

So far, though, the only inkling we have of what a Biden administration would do is that it would be some kind of "Obama 2.0"...(?) That would not (NOT) create a pretty picture for anybody with money in a savings account -- especially if that person were retired now, and drawing Social Security. Why do I say that...?

1. During the Obama administration, right up to Q4, 2015, the Federal Reserve system kept interest rates ground into the dirt. Then, finally, in the last 12 months of Obama's reign, interest rates finally began to increase slowly, by microscopic amounts. An "Obama 2.0" regime would surely be happy to see people who commit the crime of putting money in savings accounts continue to endure the persecution of ZERO interest on their savings -- even though demand for loans and credit will surely continue to skyrocket as it has almost constantly for well over the past 10 years.

2. Oh, and during those same past 10 years, people on Social Security didn't even get a cost-of-living raise in benefits for THREE of those years! And, the increases during the other seven years were laughable compared with the REAL increases in the prices of nearly everything that people must pay for: houses, rents, utilities, transportation, state and local taxes/fees, medical services, dental services, pharmaceutical medicine, many food items, many building materials, etc., etc. But, nobody considers any of that to be "inflation"....

"Obama 2.0"...? The rich get richer, the poor get poorer....

 

It will pay about 10 weeks of normal payroll, if you keep them employed.
So after 10 weeks it's burned through. Then these companies now have to survive in a highly damaged economy inflicted upon us by bureaucrats stabbling blindly in the dark

 

The little criminals. They're supposed to put it in the banker run casino, so they can take giant hits everytime the bankers cash out. Then praise the bankers who get bailed out, so they can do it all over again.

 

1% is like manna from heaven if you've seen a few things and know a few things from over the years.

 

the corps don't mind, they get to blame the stock price drop on the virus.... then give themselves huge bonuses as it goes back up

woudl they give those huge bonuses to their employees instead... doubtful

 

Why is the FED giving them trillions, again?

 

I have $185k in one account and I earned $12.58 in interest last year.

My grandmother lived off the interest of $150k in CD's for more than twenty years.

 

Twenty years ago 150k was a lot of chedda, todays its one 3/4 ton ford 4x4 diesel and maybe a Dodge charger for the wife My second home 4br two bath tri level was 67k 20 years ago too

 

Yeah, I'm not buying that. Savings interest rates are low, but not that low.

 

Oh cool! Maybe they made a mistake and owe me a nickel?

 

I believe it. See post #20. I am dead serious I earned that little interest on my deposit.

 

Transfer the money to a high yield savings account, preferably with a sign on bonus. There are many with rates above 1.5% which would net you close to three grand a year with minimal risk. A few friends — with a much higher risk tolerance than I have — are making good money with stock calls and puts.