Quotes About Interest rates

When it comes to policies of central bankers, the biggest systemic risk we have... are those policies.

From 1928 to 1982 the Dow rose about 300%. But from 1982 to mid-2021, the market has risen 3500%! That's far faster than the US economy has grown, or company earnings have risen. In addition to investor animal spirits, much of the increase is due to ultra-low interest rates.

The job of the Central Bank is to worry.

The gold standard created what economists have called a "golden straitjacket." Debtor nations would exchange control over their monetary policy for capital mobility and stable exchange rates. Although the cost of borrowing abroad would fall, the United States would lose the ability to drive domestic interest rates below international interest rates. Gold dollars would flee abroad if interest rates elsewhere were higher.

If there were not derivatives, there would be no bank loans at all today, because people want to get fixed-rate 30-year loans, but banks don't want to keep 30-year loans on their books.

The difficulty for Mr. Obama will be when the public sees where his decisions lead - higher inflation, higher interest rates, higher taxes, sluggish growth, and a jobless recovery.

Trying to understand major economic events by looking only at data on changes in economic aggregates, such as gross domestic product, wage rates, interest rates, and tax rates, runs the risk of missing the underlying motivations for change. Doing so is like trying to understand a religious awakening by looking at the cost of printing religious tracts.

Banks see this as good customer relations because, if you have savings with them, you may come in and borrow money too. They want you to do this because they can then charge nine percent or more on what you borrow.

MASTERING MONEY With the advent of derivatives and an increasingly complex economy, mastering money has become essential to surviving in the world economy. With low interest rates and an uncertain stock market, the old adages of saving and investing for the long term make no sense.

In the short run, however, stock returns are very volatile, driven by changes in earnings, interest rates, risk, and uncertainty, as well as psychological factors, such as optimism and pessimism as well as fear and greed.

Big banks, highly leveraged casinos, do whatever they can to keep the cost of their gambling as cheap as possible. This means keeping interest rates as cheap as possible.

It's one of the fundamental principles of the stock market: When interest rates go up, stocks go down. And along with financial companies and cyclicals, technology companies - with their sky-high price-to-earnings multiples - should be among the biggest losers in an environment of rising rates.

I offered the sellers what they were asking for, which was $35,000 down and they would carry the $300,000 at 8 percent interest for five years. It was such a great deal that I could not pass it up.

In accordance with the method of "German socialism," the facade of a market economy was retained. All prices, wages, and interest rates, however, were "fixed by the central authority. They [were] prices, wages, and interest rates in appearance only; in reality they [were] merely determinations of quantity relations in the government's orders.... This is socialism in the outward guise of capitalism.

Because we bump into reinforcing loops so often, it is handy to know this shortcut: The time it takes for an exponentially growing stock to double in size, the "doubling time," equals approximately 70 divided by the growth rate (expressed as a percentage). Example: If you put $100 in the bank at 7% interest per year, you will double your money in 10 years (70 ÷ 7 = 10). If you get only 5% interest, your money will take 14 years to double.

On an innovation landscape now characterized by flow, capital competes for vehicles in which to invest. Accordingly, interest rates plummet and banks threaten insolvency.

The Fed is totally open.

The federal government is enormous; it never shrinks. And the interest is killing us.

proper handling of government debt would permit America to borrow at affordable interest rates and would also act as a tonic to the economy. Used as loan collateral, government bonds could function as money—and it was the scarcity of money, Hamilton observed, that had crippled the economy and resulted in severe deflation in the value of land. America was a young country rich in opportunity. It lacked only liquid capital, and government debt could supply that gaping deficiency.

I believe that the history of Fed policymaking is that, you know, there are times when we need to raise rates.

A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank.

Money was intended to be used in exchange, but not to increase at interest. And this term interest, which means the birth of money from money, is applied to the breeding of money because the offspring resembles the parent. Wherefore of all modes of getting wealth this is the most unnatural.

And that's the one thing that people do not understand is that we have very low interest rates and if those go back to historical levels or even go back to scary thoughts that they're back in the late '70s, early '80s, then that's going to really be hard to actually pay off those debts. It's going to be a - it's going to be a very big problem.

The discrepancy between equity earnings yields and Treasury yields is at an all time high