It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Thank you.
Some features of ATS will be disabled while you continue to use an ad-blocker.
originally posted by: Edumakated
originally posted by: projectvxn
a reply to: Hazardous1408
The rates would go up for everyone. Borrowers, lenders, and savers. The only ones who benefit from rate hikes will be lenders and savers.
Borrowing will definitely slow down, but it has to in order for savings to increase. Capital comes from savings. Using borrowed money as capital tends to force the market as a whole to over leverage. That's the situation we're in now.
If interest rates go back to where they are supposed to be it will wipe some people out, but then saving will become more commonplace and banks will be better capitalized in the future to ramp up lending again.
The people who will get hurt are those with a lot of debt tied to variable interest rates. IF you carry a lot of credit card debt, you are doomed. The elephant in the room is local, state, and federal governments and how they will pay back a lot of their debt in a higher rate environment.
originally posted by: Hazardous1408
If they raise interest rates for savers is it the same interest rates for loaners etc
Isn't someone gonna get the sh*t end of the stick either way?
Or are they seperate interest rates?
I ask you, because you seem to be on the ball and are always a straight shooter.
originally posted by: Hazardous1408
originally posted by: xuenchen
originally posted by: DBCowboy
The US has the Fed, does the EU have something similar?
European Central Bank
You taught me something new. Have a beer.
The Basel Committee is the primary global standard-setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability. Mr Stefan Ingves, Governor of Sveriges Riksbank, is the chairman of the Basel Committee. He was appointed as Basel Committee chairman in July 2011 and has been reappointed until June 2017.
The Committee reports to the Group of Governors and Heads of Supervision (GHOS). The Committee seeks the endorsement of GHOS for its major decisions and its work programme.
originally posted by: AboveBoard
a reply to: xuenchen
Actually it DOES matter. If you are criticizing a response, I want to know the full context of that response. It makes no sense out of context. You are implying she had no reason to be concerned by what he said or how he said it, so prove it.
What did he say?
originally posted by: xuenchen
originally posted by: AboveBoard
a reply to: xuenchen
Actually it DOES matter. If you are criticizing a response, I want to know the full context of that response. It makes no sense out of context. You are implying she had no reason to be concerned by what he said or how he said it, so prove it.
What did he say?
Jesus calm down will ya.
What does the article say?
My God.
originally posted by: AboveBoard
originally posted by: xuenchen
originally posted by: AboveBoard
a reply to: xuenchen
Actually it DOES matter. If you are criticizing a response, I want to know the full context of that response. It makes no sense out of context. You are implying she had no reason to be concerned by what he said or how he said it, so prove it.
What did he say?
Jesus calm down will ya.
What does the article say?
My God.
I'm quite calm.
Perhaps it is you who need to calm down???
I will research it later.
originally posted by: slider1982
originally posted by: Edumakated
originally posted by: projectvxn
a reply to: Hazardous1408
The rates would go up for everyone. Borrowers, lenders, and savers. The only ones who benefit from rate hikes will be lenders and savers.
Borrowing will definitely slow down, but it has to in order for savings to increase. Capital comes from savings. Using borrowed money as capital tends to force the market as a whole to over leverage. That's the situation we're in now.
If interest rates go back to where they are supposed to be it will wipe some people out, but then saving will become more commonplace and banks will be better capitalized in the future to ramp up lending again.
The people who will get hurt are those with a lot of debt tied to variable interest rates. IF you carry a lot of credit card debt, you are doomed. The elephant in the room is local, state, and federal governments and how they will pay back a lot of their debt in a higher rate environment.
This is spot on,
I personally know a few people that believe that credit is free money, I have tried to explain how it all works but honestly I would have better luck finding a needle in a haystack that is located in Somalia and I am viewing it with a telescope on Mars than getting through...
One thing I am very happy my parents taught me was to be a saver which at the time was unheard of as credit was offered everywhere (still is)...
Sh1t will indeed hit the fan when the rates go up and no doubt people will be asking what happened..
RA