More real estate broker heresy: We NEED higher interest rates!

Reblogger Gabe Sanders
Real Estate Agent with Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales 3090099

Richard Weisser of Newnan, GA makes an interesting case for increased interest rates.  I definitely agree that the current climate does not encourage savings.  Possibly an increase in interest rates will also spur some action for those on the sidelines of buying as well.

Original content by Richard Weisser

More real estate broker heresy: We NEED higher interest rates!Some months back I wrote about eliminating the mortgage interest deduction. Many might consider that as heresy from a real estate broker.

Now I am suggesting that we NEED higher interest rates. Once again, many in the industry may take a strong dislike to that notion.

But have you tried to open a savings account lately? Or purchase a certificate of deposit? Or a treasury security?

I went into a credit union the other day and the prevailing rate for a 5 year CD with a $100K deposit was UNDER 1% per anum! Even though the rate of inflation is relatively modest, an “investor” is certainly going to lose money by saving.

And would it surprise you to learn that bank profits are at the highest levels in years?

There is no incentive to save. That puts our long-term economy at risk. Without liquid savings, the average household is just weeks away from financial ruin.

Depositors should expect a reasonable return on their investment. More savings translates to more money available for financial consumers.

We NEED higher interest rates to sustain the balance between savings and consumption.

Otherwise we are edging closer and closer to the precipice of financial collapse.

Follow Me on Twitter Follow Me on Facebook Lets get Linkedin My Outside Blog Watch my Videos on YouTube


We Need Listings! Call 770-827-6225

All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate Better Homes and Gardens Metro Brokers, Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
Learn more about Coweta County and Fayette County Georgia Real Estate, and to search the entire Georgia MLS for free with no registration required. Visit CowetaFayetteRealEstate.com! Photos of the Great Smoky Mountains National Park. North Georgia Photos.

 

North Georgia Photos

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
1,486,428
Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

I would also think that higher interest rates may be in line a littler further down the recovery, but right now things are still fragile and the economy is just starting to pick up.

Mar 16, 2013 02:23 AM #1
Rainmaker
4,797,764
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thank you for stopping by and taking the time to read my re-blog.

Nov 15, 2015 04:45 AM #2
Rainmaker
4,797,764
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Gary, thanks for taking the time to comment it is always appreciated.

Oct 24, 2018 07:20 AM #3
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
4,797,764

Gabe Sanders

Stuart Florida Real Estate
Ask me about Stuart FL real estate
*
*
*
*
Spam prevention

Additional Information