Thursday, July 14, 2011

Quote of the Day -- The Robbery of the Saving Class-- William Ford and Polina Vlasenko

The Fed’s prolonged effort to maintain interest rates at abnormally low levels has deprived savers of hundreds of billions of dollars in interest income, ultimately costing the economy between 2.4 million and 4.6 million jobs, $256 and $587 billion in consumption, and 1.75% and 3.32% in GDP growth.

~ William F. Ford and Polina Vlasenko, from The Downside of Monetary Easing
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7 comments:

  1. siding costJuly 14, 2011 at 9:38 PM

    Thanks very wonderful Quote This blog looks very great.. I love the information that i learned here.

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  2. styrofoam packing peanutsJuly 15, 2011 at 7:32 PM

    Nice one. Thanks for this great information of economy..Very informative content i found.. Thanks also for the Quote you've shared.

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  3. DIY InvestorJuly 17, 2011 at 4:00 PM

    It is interesting to me that top economists seem not to understand or give weight to the fact that there are two sides to economic transactions. I cringe when I hear Bernanke talk about the need to cut rates or keep them low. He seems not to appreciate that we have a demograhic tidal wave of people seeking to live off of fixed income that he is forcing into taking excessive risks. It's as if the Fed just assumes that the best thing for a weak economy is to lower rates.
    Similarly when he talks about deflation he doesn't seem to understand that the overall price level; can fall for two reasons: inadequate demand (bad) but also technological advance (good). Again the Fed assumes that low interest rates are the solution to a low rate of inflation that threatens deflation.
    I saw a commenter say one time
    "the road to hell is paved with false assumptions". The commenter could be right.

    ReplyDelete
  4. medical technicianJuly 17, 2011 at 9:53 PM

    Nice post, the topic is very interesting. I am not economist but the information is very clear to understand. I appreciate this post for updating my the economy.Thanks!!

    ReplyDelete
  5. corianJuly 18, 2011 at 7:53 PM

    For outreach, training & networking to ensure that the needs of low-income & minority Detroit residents are addressed in local land-use planning & regional transportation & infrastructure investments.

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  6. landscape homesSeptember 2, 2011 at 9:41 PM

    thank you for this interesting quote.. keep posting .. :)

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  7. helpfulhousehold hintSeptember 6, 2011 at 8:51 PM

    great post very interesting quote..I am not economist but the information is very clear to understand. keep posting..

    ReplyDelete

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