“Britain was set to repeat the boom-bust cycle that led to 15 per cent. interest rates for one whole year in the early 1990s.” YearsWholeInterestRateRepeatsBritainCyclesCentsInterest RateWhole Year Author:Gordon Brown
“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.” LongGrowthTermInterestCuttingHigherCostApproachRateDebtSpendingCirclesLong TermRisingRejectsUnemployment80sViciousInterest RateVicious CirclesRepayment Author:Gordon Brown
“If we want to contrast what we have done in the past few years on delivery with what the right hon. and learned Gentleman delivered, let us remember the interest rates at 10 per cent. to 15 per cent., the 1.5 million fewer people in work, the boom and the bust and the borrowing at 8 per cent.” PeopleIfsWantYearsDonePastRememberInterestMillionsRateGentlemanFewerContrastCentsDeliveryBorrowingInterest Rate Author:Tony Blair
“Throwing Ronald Reagan out of office at the height of his popularity, with inflation and interest rates down, the economy moving and the country at peace, would have required God on the ticket and She was not available!” CountryMovingInterestEconomyOfficeRateAvailableHeightThrowingPopularityTicketsInflationInterest Rate Author:Geraldine Ferraro
“Think today's interest rates are high? The Pilgrims borrowed $7000 from a London company of 70 investors in 1620, and devoted the next 23 years to repaying it at 43 percent.” ThinkingYearsTodayNextInterestCompanyPercentRateLondonInvestorsDevotedBorrowedPilgrimInterest RateRepaying Author:L. M. Boyd
“Imagine you have six loans, small to huge. People want to close loans and because of that, they try to pay off the small loans, but that's not the right strategy. The right strategy, of course, is to pay the loan with the highest interest rate. People make this mistake and it costs them lots and lots of money, it's a very expensive mistake because interest rates accumulate and become very, very expensive very quickly.” PeopleWantTryingCoursesInterestPayMistakeImagineHugeCostSixHighestStrategyRateExpensiveLots Of MoneyLoanInterest Rate Author:Dan Ariely
“If you have loans, the first thing you want to do is say, "Okay, look I have a credit card, if I really need to borrow, I have this emergency money that I can get, but for now there is no reason for me to keep cash at zero percent interest rate and at the same time, pay all of this money out. So, I think people need to figure out quickly how to pay loans and how much cash they should really keep.” PeopleIfsThinkingWantNeedsShouldFirstsLooksI CanReasonInterestPayFiguresPercentOkayRateCreditCardsNo ReasonZeroCashEmergenciesLoanCredit CardInterest Rate Author:Dan Ariely
“A cash advance on a credit card is one of the worst types of borrowing because the interest rate is typically 21 percent or more.” InterestWorstTypePercentRateCreditCardsCashCredit CardBorrowingInterest Rate Author:Suze Orman
“At some point the Japanese, Chinese and Saudi buyers of US and European Government bonds will see just what miserable value they offer. Then governments may have to stop all the runaway spending and bailouts and even put up interest rates.” MayGovernmentValuesInterestOffersRateSpendingMiserableChineseSaudisInterest RateBuyersRunawayBailouts Author:Luke Johnson
“The time will come, and probably during 2009, that the only way the U.S. will be able to fund its deficits is to create money by printing it. The Treasury will have to sell bonds, and, in the absence of foreign buyers, the Fed will have to print the money to buy them. The consequence will be runaway inflation, increasing interest rates, recession, and inevitable tax increases on all Americans.” WayAbleInterestTaxesConsequenceIncreaseSellsRateAbsenceInevitableFundFedsPrintInflationDeficitPrintingRecessionsTreasuryInterest RateBuyersRunawayTax Increases Author:Doug Casey
“The government can indefinitely control both short-term and long-term interest rates.” LongGovernmentTermInterestRateLong TermShort TermInterest Rate Author:Seth Klarman
“We're guessing at our future opportunity cost. Warrenis guessing that he'll have the opportunity to put capital out at high rates of return, so he's not willing to put it out at less than 10% now. But if we knew interest rates would stay at 1%, we'd change. Our hurdles reflect our estimate of future opportunity costs.” IfsOpportunityInterestWillingReturnCostRateOur FutureGuessingInterest RateHurdleOpportunity Cost Author:Charlie Munger
“In Germany, college tuition is free. In America, college tuition is increasingly unaffordable. In a highly competitive global economy, which country do you think will have the best educated work force and a competitive advantage? We must make tuition free in public colleges and universities and substantially reduce interest rates on student loans.” ThinkingCountryAmericaForceInterestEducationEconomyStudentsCollegeAdvantageRateUniversityEducatedGermanyLoanGlobal EconomyInterest RateCompetitive AdvantageTuitionStudent LoanColleges And UniversitiesCollege Tuition Author:Bernie Sanders
“The recovery of the banks is what happens when you reduce competition, lend money to them at zero interest rates, allow them to gamble. That particular style of restoration actually inhibits the economic recovery.” HappensInterestEconomicStyleParticularCompetitionRateRecoveryZeroRestorationGambleInterest RateEconomic Recovery Author:Joseph Stiglitz
“It takes 150 years to build an investment bank and only five minutes to convince you to sell me preferred stock in it at a 10% interest rate.” YearsInterestFiveMinutesSellsInvestmentRateConvinceFive MinutesInterest RatePreferred Stock Author:Warren Buffett
“As president, I will fight to make tuition in public colleges and universities free, as well as substantially lower interest rates on student loans.” WellsFightingPresidentInterestStudentsCollegeRateUniversityLoanInterest RateTuitionStudent LoanColleges And Universities Book:Our Revolution: A Future to Believe in Source: Our Revolution: A Future to Believe in
“Student debt is crushing the lives of millions of Americans. How does it happen that we can get a home mortgage or purchase a car with interest rates half of that being paid for student loans? We must make higher education affordable for all. We must substantially lower interest rates on student loans. This must be a national priority.” DoeHomeHappensInterestHalfMillionsCarStudentsHigherPaidRateDebtPrioritiesCrushLoanMortgageAffordableHigher EducationInterest RateStudent LoanHome Mortgage Author:Bernie Sanders
“We must fundamentally restructure our student loan program. It makes no sense that students and their parents are forced to pay interest rates for higher education loans that are much higher than they pay for car loans or housing mortgages.” ParentInterestPayCarStudentsHigherProgramRateHousingLoanMortgageHigher EducationInterest RateStudent LoanRestructureCar Loan Author:Bernie Sanders
“My financial adviser Ric Edelman...thinks the time to start educating people about money is when they are children. He's set up a retirement plan called the RIC-E-Trust that can provide retirement security. A $5,000 one-time tax-deferred investment at birth, with an average interest rate of ten percent compounded, means that a child would have $2.4 million when he or she is 65 years old. Who needs Social Security with that kind of nest egg?” PeopleThinkingNeedsYearsKindMeanChildrenSocialInterestMillionsPlansSecurityBirthTenTaxesPercentInvestmentRateFinancialAverageEggsRetirementOne TimeSocial SecurityNestsInterest RateAdviser Author:Cal Thomas
“A lower interest rate doesn't make a debt go away.” InterestRateDebtGoing AwayInterest Rate Author:Dave Ramsey
“Imagine you owe on five credit cards, you owe five debts. So which debt should you pay first? And the answer is very simple: You should pay the one with the highest interest rate first. But that's not what people do.” PeopleShouldFirstsInterestSimpleAnswersPayFiveImagineHighestRateCreditDebtCardsCredit CardInterest Rate Author:Dan Ariely
“It might be harder for us to charge a higher interest rate, like they do, so it might not be as profitable for us. But we can either compete or partner, like we've announced with On Deck, which does some of the stuff we just spoke about.” DoeMightStuffInterestHigherHarderRatePartnersSpokesProfitableDeckInterest Rate Author:Jamie Dimon
“If you're making all your money simply betting on interest rates, that's not a business. Flow is a business. On the outside, they look the same for a while. But when you dig into them, no, they weren't exactly the same.” IfsLooksInterestFlowRateInterest RateBetting Author:Jamie Dimon
“I want you to say to me right from the start, "We are here to serve customers. We're not here for me to make a lot of money. We're not here to bet on interest rates or credit spreads. We are here to serve our customers really well over a long period of time, and that's how you build a successful business." And so I want to see that, too, you know?” KnowsWantWellsLongInterestSuccessfulPeriodsRateSpreadCreditCustomersLots Of MoneyI Want YouSuccessful BusinessInterest RateLong Periods Of Time Author:Jamie Dimon
“I've found that when you can quickly knock out debt you get motivated because you see progress. Then you attack the other debt so fast that even if it's at a higher interest rate, you don't end up paying much more because you've gotten rid of it.” IfsEndsFoundInterestProgressHigherRateDebtMotivatedInterest Rate Author:Michelle Singletary
“How long can interest rates stay negative? Think about this. Not only are you lending your money to governments, but you're paying them interest for the privilege of doing so.” ThinkingLongGovernmentInterestNegativeRatePrivilegeLendingInterest Rate Author:Mohamed El-Erian
“The one instrument that has relative political autonomy is monetary policy. Central banks do not need to go to Congress to get approval for an interest rate hike.” NeedsPoliticalInterestPolicyInstrumentsRateCongressRelativeApprovalAutonomyMonetaryInterest RateCentral BanksMonetary Policy Author:Mohamed El-Erian
“The theory is that if you take interest rates negative, people are going to say, "That's a silly game! I'm not going to lend my money to governments who want me to pay them. I am going to go into the stock market where I can get positive returns!"” PeopleIfsWantI CanGovernmentGamesInterestPayTheoryReturnNegativeRateSillyWant MeNegative PeopleInterest Rate Author:Mohamed El-Erian
“If you happen to be the only one with negative interest rates, you also weaken your currency, which means you make your exports more competitive.” IfsMeanHappensInterestNegativeRateCurrencyInterest Rate Author:Mohamed El-Erian
“Students are suffering under incredibly high tuitions and high student loan interest rates. They graduate from school, and they're having a very difficult time finding a job. They don't feel as though there are honest leaders who are listening to them, and who will be a part of the solution.” FeelsSchoolJobsSufferingDifficultInterestLeaderHonestStudentsListeningFindingsSolutionsRateGraduatesLoanDifficult TimesInterest RateTuitionStudent Loan Author:Tulsi Gabbard
“If you have credit card debt and credit card companies continue to close down the cards, what are you going to do? What are you going to do if they raise your interest rates to 32 percent? That's five times higher than what your kid is going to pay in interest on a student loan. Get rid of your credit card debt.” IfsKidsInterestPayCompanyFiveStudentsHigherPercentRaisesRateCreditDebtCardsLoanCredit CardInterest RateStudent LoanCredit Card Debt Author:Suze Orman
“Remember that in most cases, student loan debt is not dischargeable in bankruptcy. So you continue to pay it off anyway. Those who have very low interest rates (2-2.5 percent) on student loans and know everything is secure, great.” KnowsRememberInterestPayCasesStudentsLowsPercentRateDebtSecureLoanBankruptcyInterest RateStudent Loan Author:Suze Orman
“We need economic growth in Europe and we need to find a solution for the excessive interest rates that are making it difficult for many countries to get their own debt under control.” NeedsCountryDifficultGrowthInterestEconomicSolutionsEuropeRateDebtEconomic GrowthInterest Rate Author:Martin Schulz
“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.” PeopleWantTryingValuesInterestLosesStreetsWallNegativeRaisesStrategyRateFinancialFundFedsEngineeringCollapseInterest RateGimmicksHedge Fund Author:Michael Hudson
“Most savings rates are based on underlying interest rates.” InterestRateSavingSavingsInterest Rate Author:Martin Lewis
“Once the dollar begins to collapse beneath the weight of all this new deficit spending, accumulation of contingency liabilities and the socialization of our economy, commodity prices and interest rates will head skyward.” InterestEconomyWeightDollarsRateSpendingCollapseCommodityDeficitAccumulationInterest RateLiabilityContingencySocializationDeficit SpendingCommodity Prices Author:Peter Schiff
“You fall a bit behind on a credit card bill, your interest rate soars, your minimum payment rises, and you start falling more and more behind every month. You don't see an end. But you don't want to file bankruptcy either. What you can do - and should do - is negotiate.” WantShouldEndsFallBitsInterestCan DoBehindsMonthsBillsRateCreditCardsMinimumSoarFilesPaymentCredit CardBankruptcyInterest Rate Author:Jean Chatzky
“A consolidation makes sense only if you can lower your overall interest rate. Many people consolidate by taking out a home equity line loan or home equity line of credit (HELOC), refinancing a mortgage, or taking out a personal loan. They then use this cheaper debt to pay off more expensive debt, most frequently credit card loans, but also auto loans, private student loans, or other debt.” PeopleIfsUseHomeInterestLinesPayStudentsRateCreditDebtCardsMake SenseExpensiveEquityLoanMortgageCheaperCredit CardInterest RateStudent LoanConsolidationHome Equity Author:Jean Chatzky
“If you are, consolidating at a lower interest rate can help you pay off your debt faster. But if there's even a small chance that you'll spiral back into debt, it's not for you.” IfsHelpingInterestChancePayRateDebtFasterSpiralsInterest Rate Author:Jean Chatzky
“The interest rate you receive, however, is contingent on your credit score.” InterestRateCreditScoreInterest RateCredit Scores Author:Jean Chatzky
“The yen is trading where it's trading because people are guessing about people's future interest rates, dollar and yen and about the future growth potential of the economies. And, if this policy works, then the yen will probably strengthen.” PeopleIfsGrowthInterestEconomyPolicyDollarsRateTradingGuessingInterest RateFuture Growth Author:Jamie Dimon
“The reality is the most important thing that can be done are these permanent changes like to the tax code, reduction of government spending. These are the things that pop up in economy and move it in the right direction, start to make it an economy that is moving because of the money in the private economy. When you think about it, when the Fed is lowering an interest rate, what it's doing is it's creating more liquidity. It's putting more money into the economy. The same thing happens when you reduce the tax except if happens from physical policy.” IfsThinkingImportantDoneRealityGovernmentHappensMovingInterestEconomyPolicyTaxesCreatingImportant ThingsRatePopsSpendingThings HappenCodePermanentFedsMore MoneyReductionRight DirectionInterest RateGovernment SpendingLiquidityPermanent Change Author:Rudy Giuliani
“A dramatic unwinding of that relationship [between USA and China], by way of an aggressive trade policy, is one of the nightmare scenarios for the global economy as a whole, because it would result in a spiraling depreciation of the dollar, a surge in American interests rates, a collapse in the market for American government debt.” WayWholeGovernmentInterestResultsEconomyPolicyTradeDollarsRateChinaDebtDramaticUsaNightmareAggressiveCollapseScenariosGlobal EconomyInterest RateAmerican GovernmentDepreciationGovernment Debt Author:Judy Woodruff
“If you put Canada into $1.5 trillion in debt and interest rates go up just 200 basis points, you cannot provide the services to 36 million people that were guaranteed to them in the social contract they have with Canada. That's a very, very scary prospect. You can't burden this economy with that much debt. The risk you take on is insurmountable. You have to assume for the next 50 years that rates don't go up? That's insane. That's irresponsible. That's stupid.” PeopleIfsYearsNextSocialInterestMillionsEconomyRiskStupidBasesAssumingRateBurdenScaryDebtInsaneCanadaContractsIrresponsibleInterest RateInsurmountableSocial Contract Author:Kevin O'Leary
“If we can’t puncture some of the mythology around austerity, politics or tax cuts or the mythology that’s been built up around the Reagan revolution, where somehow people genuinely think that he slashed government and slashed the deficit and that the recovery was because of all these massive tax cuts, as opposed to a shift in interest-rate policy - if we can’t describe that effectively, then we’re doomed to keep on making more and more mistakes.” PeopleIfsThinkingGovernmentInterestMistakeCuttingPolicyRevolutionTaxesBuiltRateMythologyRecoveryMassiveDoomedDeficitTax CutsInterest RateAusterityPuncture Author:Barack Obama
“It isn't given to man to be able to run a financial institution where different interest-rate scenarios will prevail on all of that so as to produce kind of smooth, regular earnings from a very large base to start with.” MenKindDifferentRunningAbleGivenInterestProduceInstitutionsRateFinancialSmoothEarningScenariosInterest RateFinancial Institutions Author:Warren Buffett
“The IMF insisted that both Russia and Brazil maintain their currency at over-valued levels. Who are you protecting when you try to maintain that exchange rate by having high interest rates? You're protecting domestic and foreign firms that have gambled on the exchange rate. And who is paying the price? The small businesses that did not gamble [and no longer can afford loans], the workers who are going to be put out of jobs.” TryingJobsInterestLevelsWorkersRateRussiaFirmCurrencySmall BusinessLoanGambleBrazilInterest RateImf Author:Joseph Stiglitz
“It does not stand to give banks millions of dollars at an interest rate of one percent, when banks charge students an interest rate of 6 percent. Why should the banks be scalping students?” GivingShouldDoeInterestMillionsStudentsPercentDollarsRateInterest Rate Author:Jesse Jackson
“Right now we're concerned about budget. Right now we're concerned about the prospect of interest rate rise. We're concerned about government corruption, government handing out deals to specific groups. Coolidge fixed a problem like that. He came into a rough time and he, and Harding before him, fixed that by budgeting.” ProblemGovernmentInterestDealsGroupsRight NowConcernedRateCorruptionBudgetsFixedRoughRough TimesInterest RateGovernment CorruptionBudgetingHarding Author:Amity Shlaes
“Since 2008 you've had the largest bond market rally in history, as the Federal Reserve flooded the economy with quantitative easing to drive down interest rates. Driving down the interest rates creates a boom in the stock market, and also the real estate market. The resulting capital gains not treated as income.” RealInterestEconomyGainsRateDrivingIncomeTreatedReservesEstatesFederal ReserveInterest RateCapital GainsBond MarketReal Estate Market Author:Michael Hudson