A Quote by John Delaney
I'm not an economist, but I have spent time around thousands of small-business owners and investors, and I remain skeptical - despite the best intentions of the Fed - that even lower interest rates can make a meaningful dent in our unemployment problem.
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It's time to level the playing field for small business owners and give them the same health care choices that large corporations have. Because they don't have as many employees, they have little ability to negotiate lower rates.
The greatest economic power might in fact remain in the hands of the Federal Reserve. Economists credit the Fed's policy of keeping interest rates at historic lows with helping to pump up the economy and bring unemployment down.
The U.S. should take notes: Government overspending and a campaign of alienating investors and small business isn't really the best way to boost the economy or overcome massive unemployment.
The Fed's ability to raise and lower short-term interest rates is its primary control over the economy.
And so Fannie Mae produces very strong results for investors in - when interest rates are high and when interest rates are low, in recession and during booms.
As a former small business owner, I recognize both the important role small businesses play in our economy and the broad universe of challenges that small business owners face in trying to make ends meet.
If we are going to have a Fed, it should not fall into the tyranny of experts with the a fatal conceit that a few wise people can determine interest rates. Interest rates should be driven by the market, and people's time preference, and we see these boom-bust cycles.
By putting downward pressure on interest rates, the Fed is trying to make financial conditions more accommodative - supporting asset values and lower borrowing costs for households and businesses and thus encouraging the spending that spurs job creation and a stronger recovery.
Yet our small business owners across the country are unfairly losing potential interest income on a daily basis until the Business Checking Freedom Act becomes law.
Lower interest rates are usually considered good for stocks because they lower the cost of borrowing and make bonds a less attractive alternative investment.
What's true for New York is true for most of the country: We are a long way removed from the double-digit interest rates and unemployment rates, and the soaring crime rates, of the early 1980s.
Small businesses provide 75 percent of new U.S. jobs and are the backbone of our economy, and no outdated ban should be keeping small business owners from collecting the same interest their money could earn if it were held by an individual.
Our approach is to reject the old vicious circle of the '80s-rising debt, higher long-term interest rates, higher debt repayment costs, lower growth, higher unemployment, then enforced cuts in public spending. That was the old boom and bust.
Bank One has got one of the best credit card divisions, ... The perception of investors is that financial services stocks are affected by interest rates and they're not.
The underlying strategy of the Fed is to tell people, "Do you want your money to lose value in the bank, or do you want to put it in the stock market?" They're trying to push money into the stock market, into hedge funds, to temporarily bid up prices. Then, all of a sudden, the Fed can raise interest rates, let the stock market prices collapse and the people will lose even more in the stock market than they would have by the negative interest rates in the bank. So it's a pro-Wall Street financial engineering gimmick.
Rising interest rates are considered bad for stocks because they raise the cost of doing business and depress corporate earnings and because higher yields make bonds relatively more attractive than stocks to investors.
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