Feds raised rate to 5%

[JoyJoy]

Originally Posted by rexdart

\

you want a real eye opener, lookup what the rates were back around '81 of course that's meaningless to today's environment because it isn't like you were going to get an ING account with a $25 opening bonus at 20% but it's sure as heck nice to think about!

A 20% Ing, ED and HSBC account would take away a lot of financial woes here! Nice to dream though and even my hubby would dance to that!

[sweeps]

Just as long as inflation isn't 20% also.

exactly! hence my "meaningless to today's environment" comment!





I was too young at the time to have been directly affected by that, but it's hard to imagine interest rates at that level. What happened to get people into houses?! Were prices depressed because of the high rates or did folks just not buy?

[JoyJoy]

Originally Posted by Sweepsplayer

Just as long as inflation isn't 20% also.

Ouch! Then I would literally fly away.

[PRICEPLUS]

20% would be nice.

[TTUPharmer]

Originally Posted by Ima saver

The rate on my money market changes every time the fed raises rates. It just went up, again!

yeah, my ING went up recently

[VJW]

Originally Posted by rexdart

possibly unrelated VJW but I recently received my annual pay increase at work.....3%.....I'm a good employee, it wasn't personal, just the department "restraining" pay increases but I looked at the people evaluating me and asked "do you know what the rate of inflation is/has been the last year?"

I got mostly blank looks as I expected and was asked "we don't understand what you mean," to which I explained that effectively, from a relative prosperity stand point, they just cut my pay.

they still didn't get it.

needless to say, I have "restrained" my output at work lately.

obviously, in the end, it's not going to hurt anyone but me, but I've never let common sense stand in the way of making a point.

Not unrelated at all. It’s actually quite on point.

A lot of people see the rising prices all around them, or understand when they take an actual pay cut, but do not comprehend that if their income is not rising faster than the underlying rate of inflation in the economy (which is undervalued, but that’s another thread), their Standard of Living is going backwards.


Back to the Fed, when they made this last increase in the Fed Funds Rate to 5%, they also raised the Discount Rate to 6%. I noticed Douglas Jimerson (editor and publisher of National Trendlines) on the ‘Nightly Business Report’ on Friday, and he stated:

“each time they have reached 6 percent or higher, we`ve had a major top in the market”

NBR

#

[SuzeOFan]

[QUOTE rexdart:

they still didn't get it.

needless to say, I have "restrained" my output at work lately.

obviously, in the end, it's not going to hurt anyone but me, but I've never let common sense stand in the way of making a point. [/quote]


I don't know that that's necessarily true rexdart....

It seems it's always the crappy employees - you know the one who really ought to get canned - they're the ones who gets the raise - while joe hard-worker-gives-a-damn only gets the measly 3% 'cost of living' whatever that's supposed to mean. Like you said it doesn't even cover inflation.

But consider yourself one of the lucky ones!

My husband works for big company that had their best year ever... guess what he got for a raise? Nothing! Didn't even offer an explanation. 'Nothing we can do' his boss tells him - it's policy from the top down for the whole department. But the new guy who been seen sleeping in his cubicle....sure 'nough got his raise! I guess the writings on the wall...

So maybe you didn't get a raise Rexdart, but if you made a big enough stink about it, you could work out a longer vacation time or a few work from home days... just a thought.

The squeeky wheel approach seems to be the one that works much of the time in corporate America.

thanks SuzeOFan but please don't let me exaggerate, I am purely a working class type of guy and I am that because I choose to be. I just wanted to use myself as an example of the general trend the last few years of the wage stagnation so often cited as an aberration during the recent financial "upswing."

If I wanted more money I could be promoted tomorrow but I like what I do and have no desire for the added stress that would come with the change. don't get me wrong, it pisses me off no doubt, but there are people out there like your hubby who work harder than I do and don't even get the 3% that I got.

I've already made some financial adjustments (both behavioral and commitments) that will effectively increase my cash flow so to speak. I'll get the raise I planned on, just not in the way I would have liked.

[SuzeOFan]

I just wanted to use myself as an example of the general trend the last few years of the wage stagnation so often cited as an aberration during the recent financial "upswing."

What's going on? Why isn't this sort of thing front page news?
That's exactly right!

Like I said, my husband's company had their best year ever...
obviously no thanks to its' hardworking employees...

Corporate greed...?
What they're doing today ought to be an 11th commandment.

Maybe something to the effect of:

thou shalt not muzzle the oxen when your wheat bins are overflowing...