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"When the Fed lowers its interest rate, consumer interest rates fall; when the Fed raises its interest rate, consumer interest rates rise. Another tool of the Fed is the federal funds rate, the interest rate at which banks borrow from one another, usually overnight, to maintain required reserves. The Fed does not set the federal funds rate—which is a floating rate—but it can set target rates and manage the rate by buying and selling securities. The discount rate and federal funds rate are powerful tools the Fed uses as a part of controlling interest rates generally." - The New York Times, The New York Times Guide to Essential Knowledge: A Desk Reference for the Curious Mind (Get the book.)

"On February 23, 2004, the Fed chief urged Americans to switch from fixed rate mortgages to ARMs—mortgages with adjustable rates, which left them much more exposed to interest rate increases, at the very moment when the Fed was increasing them. If anyone could be held directly and immediately responsible for the record level of America's foreign and domestic debts, it was Alan Greenspan. He had brought about a binge of borrowing by lowering interest rates down to Eisenhower-era levels. But spiking the punch was not enough; he was urging consumers to have another drink." - William Bonner, Addison Wiggin, Empire of Debt: The Rise of an Epic Financial Crisis (Get the book.)

"January 1881 to January 2005 (author's splicing of two historical long-term interest rate series).5 on the index. The points shown reflect monthly data, January 1881 to January 2005. The price-earnings ratio is a measure of how expensive the market is relative to an objective measure of the ability of corporations to earn profits. I use the ten-year average of real earnings for the denominator, along lines proposed by Benjamin Graham and David Dodd in 1934." - Brian Fagan, Floods, Famines, and Emperors: El Nino and the Fate of Civilizations (Get the book.) "June 1901, barely above the real interest rate. The average real return (including dividends) was 4.4% a year in the ten years following June 1901,3.1% a year in the fifteen years following June 1901, and -0.2% a year in the twenty years following June 1901.10 These are lower returns than we generally expect from the stock market, though had one held on into the 1920s, returns would have improved dramatically. The second instance of a high price-earnings ratio occurred in September 1929, the high point of the market in the 1920s and the second-highest ratio of all time." - Brian Fagan, Floods, Famines, and Emperors: El Nino and the Fate of Civilizations (Get the book.) "Census; lowest line, thin line (left scale): long-term interest rate constructed by the author from two sources.5 was higher in some areas of the United States and lower in others, but the fact that it was a 52% increase over all is remarkable. This is nothing like the tripling of the stock market between 1995 and 2000, but, when viewed in comparison with long-run historical patterns in home prices, it is still striking. We could not appreciate this pattern of home prices by looking at recent years alone; one could not appreciate how anomalous the recent experience has been." - Brian Fagan, Floods, Famines, and Emperors: El Nino and the Fate of Civilizations (Get the book.) "The onset of the Great Depression of the 1930s was in fact substantially due to monetary authorities' trying to stabilize speculative markets through interest rate policies, although the markets they were focusing most on were not the stock markets but the markets for their own currencies. Countries attempted to preserve the fixed exchange rate system, represented by the gold standard, against attacks. The countries that gave up earliest and abandoned their efforts to defend their currencies were the ones to emerge from the depression the soonest." - Brian Fagan, Floods, Famines, and Emperors: El Nino and the Fate of Civilizations (Get the book.)

"Medicare applies a usurious interest rate to the amount demanded. Even before any binding decision against the physician, Medicare assesses the physician with reimbursement of the amount that would be due and owing if all files contained the same rate of error as the sampled subset plus interest at an annual rate that is comparable to that of a rip-off credit card. Every day that a physician does not pay, the amount due Medicare climbs. Within a matter of months, the amount demanded can be quite impressive." - Jonathan W. Emord, The Rise of Tyranny (Get the book.)

"You'll most likely pay a high interest rate as well, needing more time to recover than if that energy had not been borrowed in the first place. This is the beginning of a vicious circle. In the next chapter, I provide strategies to recalibrate the body, and in doing so, get maximum energy simply from eating natural food. At a Glance • Stress is the root cause of most ailments, both minor and major, in the North American population. • About 40 percent of the average North American's total stress can be attributed to diet." - Brendan Brazier, The Thrive Diet: The Whole Food Way to Lose Weight, Reduce Stress, and Stay Healthy for Life (Get the book.)

"Well," he sighed, "the loan was written for 5 percent, but then the Cooperative Bank notified us that the interest rate was going up to 15 percent, and that's where it's been for many years now." "So you see, we sell our coffee and the bank is waiting for us. That is why we have so little money," added John Muchuri. "That's really high! How can the farmers pay that back?" I asked. "Well, actually we pay about 20 percent, because we don't have the money to pay the loan on time, so the interest and penalties build up." "Why don't you have the money?" - Dean Cycon, Javatrekker: Dispatches From the World of Fair Trade Coffee (Get the book.)

"The house buying-and-selling orgy of the early twenty-first century was set off by the Federal Reserve's policy, over a five-year period from 1998 to 2003, of steadily reducing to nearly nothing the interest rate that it charged banks to borrow money, which worked its way through the lending system so that mortgage rates fell to historically supernatural lows. The low interest rates were joined by a further decay of lending practices so that practically anyone over age twenty-one with no record of creditworthiness could get a low or even zero down-payment mortgage." - James Howard Kunstler, The Long Emergency: Surviving the End of Oil, Climate Change, and Other Converging Catastrophes of the Twenty-First Century (Get the book.) "The severe inflation and interest rate hikes of the 1970s threatened to drive the thrifts out of business. In 1980, Congress began eliminating the interest rate ceilings on S&Ls, and simultaneously raised deposit insurance from $40,000 to $100,000 per account for S&Ls. The 1982 Garn-St. Germain Act allowed S&Ls to invest up to 40 percent of their money in ventures not related to housing." - James Howard Kunstler, The Long Emergency: Surviving the End of Oil, Climate Change, and Other Converging Catastrophes of the Twenty-First Century (Get the book.)

"They also made use of the rapidly expanding market for interest rate and other complex derivatives, which are, at their core, leveraged bets on a particular event or outcome. Instead of being exposed solely to honoring a guarantee on some proportion of the securities they backed, Fannie and Freddie would have to deal with many other potential uncertainties. And they had to do so successfully if the banks, which owned a combined $1 trillion of direct debt and MBSs issued by the two behemoths, were to avoid paying a devastating price." - Michael J. Panzner, Financial Armageddon: Protecting Your Future from Four Impending Catastrophes (Get the book.)

"The volume of outstanding interest rate and currency derivatives has grown from zero to $865 billion during the 15 years from 1972 to 1987, according to the International Swaps and Derivatives Association. During the next 15 years, from 1987 to 2002, the derivative market grew to $100 trillion, or more than a hundredfold, trebling on average every four years. In 2007, this haunt of the hedges had reached a total face value of around $500 trillion. That is roughly 30 times the size of the U.S. economy and 10 times the size of the old global economy itself. What a jolly time to be alive!" - William Bonner, Lila Rajiva, Mobs, Messiahs, and Markets: Surviving the Public Spectacle in Finance and Politics (Agora Series) (Get the book.)

"This exposed Fannie and Freddie to enormous interest rate, credit, and repayment risk. The latter danger reflects that borrowers can pay off the underlying loan at any time, and if a number of borrowers whose debts collateralize the MBS make the same decision, their collective actions can shorten or lengthen the effective maturity date—and hence the value—of the security, creating costly pricing uncertainty. But it seemed that Fannie Mae and Freddie Mac were not just going to roll the dice. They decided that the key to managing risk was to actively buy and sell securities." - Michael J. Panzner, Financial Armageddon: Protecting Your Future from Four Impending Catastrophes (Get the book.) "Along with the direct economic impact, however, developments in the credit markets dramatically altered the distribution and structure of interest rate and default risk in the American financial system. For a start, with the gradual move from unsecured towards secured lending, debtors assumed a greater financial burden in the event that they could not pay their bills." - Michael J. Panzner, Financial Armageddon: Protecting Your Future from Four Impending Catastrophes (Get the book.)

"The situation is a little like getting a new credit card without paying attention to the fine print stating the interest rate. If you ignore the fine print, you could end up paying a steep price. With food labels, you must distinguish between the advertising that tries to sell you the product and information stating what it actually offers in terms of good or bad nutrition. If you don't read labels, you will pay with your health. Even we have occasionally been victims of a "gotcha" when we took something for granted and skipped reading the fine print." - Jack Challem, Stop Prediabetes Now: The Ultimate Plan to Lose Weight and Prevent Diabetes (Get the book.)

"Another tool of the Fed is the federal funds rate, the interest rate at which banks borrow from one another, usually overnight, to maintain required reserves. The Fed does not set the federal funds rate—which is a floating rate—but it can set target rates and manage the rate by buying and selling securities. The discount rate and federal funds rate are powerful tools the Fed uses as a part of controlling interest rates generally. Reserve Requirements The third instrument, changes in reserve ratios (within legally set limits), is rarely used." - The New York Times, The New York Times Guide to Essential Knowledge: A Desk Reference for the Curious Mind (Get the book.)

"It will only pay the interest rate it feels it needs to pay and it will redeem the bonds whenever it thinks it's best to redeem them. All the money in profits beyond that will be managed for the good of humanity in one or two ways: either by investing it in relationship investment banking firms, which will be about the business of buying more companies and converting them to be relationship corporations; or by donating it to charitable and education activities around the world." Does Terry think that global evolution will encourage the positive transformation of corporations? " - David H. Rippe, Jared Rosen, The Flip: Turn Your World Around (Get the book.) "After he was drilled with late charges and a staggering interest rate, Barry went back and read the fine print on his contract. And what fine print it is: legalese in three-point type, so complex Alan Greenspan would scratch his noggin in bafflement. Barry now realizes the deck was stacked against him. He's been had by the moneymen. Remarkably, even though Barry is over his head in debt and racked with anxiety, he continues to live beyond his means. He continues to work the credit card offers." - David H. Rippe, Jared Rosen, The Flip: Turn Your World Around (Get the book.)

"In the spring of 2005, Grant's interest rate Observer paused to observe something unusual: Rarer even than a banker with a heart, it had discovered one with a brain. Mr. Vernon W. Hill is a banker from a small town that must be in a gully; the winds of modern debt-financing didn't seem to reach it. "We feel the U.S. is in trouble, with major weaknesses and unpleasantness ahead," he says. "Whether inflation or deflation lies ahead, or some kind of both, we believe many borrowers will be unable to repay their loans as scheduled." None of the reasons Mr." - William Bonner, Addison Wiggin, Empire of Debt: The Rise of an Epic Financial Crisis (Get the book.) "Lower the interest rate! Relax reserve requirements and lending standards! Sell more bonds! Create more paper! Paper money is ready to go along with anything. Like George W. Bush, it never met a boondoggle it didn't like. Sooner or later, it ends up as worthless as the projects it was meant to pay for. Gold is merely the subversive investor's way of protecting himself. SPECULATIONS Is. Was. Will be again. If things remained the same, there would be no need for verb tenses. But things do not remain the same, they change." - William Bonner, Addison Wiggin, Empire of Debt: The Rise of an Epic Financial Crisis (Get the book.) "Evidence came from a magazine spotted on Long Island, again through the ever-observant Grant's interest rate Observer. The publication, entitled Real Simple, told the story of a poor woman named Morning Naughton, 34 years old in the flesh, hundreds of years old in spirit. If the phone didn't ring at an expensive jewelry store, it was Ms. Naughton who wasn't calling. If no one was admiring the new SUVs in a North Carolina showroom, it was Ms. Naughton who stayed at home." - William Bonner, Addison Wiggin, Empire of Debt: The Rise of an Epic Financial Crisis (Get the book.)

"Grant's interest rate Observer gives an example. In Boston, Mr. John C. Kiley, writing in 1941, observed that prices had been going down for 11 years. He noted that "in some of the older business and residential sections of the city of Boston have returned to levels below those of the pre-Civil War years."11 One hundred years of price appreciation—wiped out ... by the depression and the automobile. "When I was a young man in the early 1980s, I used to play in a rock and roll band in Minneapolis," writes another observer, alternative investment analyst George Paulos. " - William Bonner, Lila Rajiva, Mobs, Messiahs, and Markets: Surviving the Public Spectacle in Finance and Politics (Agora Series) (Get the book.)

"It also sets the discount rate, the interest rate at which it lends money to its commercial bank customers. The discount rate helps decide interest rates that the banks, in turn, charge their customers. Finally, the Fed also helps regulate commercial banks. Causes of the Great Depression While the European landscape and economy were in ruins after World War I, the U.S. emerged from the conflict relatively unscathed. The postwar strength produced the roaring twenties, a decade in which social exuberance was matched by wild speculations in the credit and stock markets." - The New York Times, The New York Times Guide to Essential Knowledge: A Desk Reference for the Curious Mind (Get the book.) "Banking Act of 1933, it charters banks and insures the deposits (up to a maximum of $100,000 per depositor) in member banks; financed by charges paid by member banks, federal funds rate interest rate that banks with excess reserves at a Federal Reserve district bank charge other banks that need overnight loans. The fed-funds rate, as it is called, often points to the direction of U.S. interest rates because it is set daily by the market, unlike the prime rate and the discount rate. The Federal Reserve does not have a target for the fed-funds rate, which it moves periodically." - The New York Times, The New York Times Guide to Essential Knowledge: A Desk Reference for the Curious Mind (Get the book.)

"The interest rate that banks charge to corporations that are considered excellent risks. fa The prime rate is usually the lowest prevailing interest rate; if it rises, rates available to consumers will soon rise. principal The original amount of money lent, not including profits and interest. private enterprise Business carried on for profit and not owned by the government; also, the system that discourages public ownership of business; the same as free enterprise. (See private sector." - James Trefil, Joseph F. Kett, and E. D. Hirsch, The New Dictionary of Cultural Literacy: What Every American Needs to Know (Get the book.)

"The interest rate that banks charge to corporations that are considered excellent risks. fa The prime rate is usually the lowest prevailing interest rate; if it rises, rates available to consumers will soon rise. principal The original amount of money lent, not including profits and interest. private enterprise Business carried on for profit and not owned by the government; also, the system that discourages public ownership of business; the same as free enterprise. (See private sector." - E. D. Hirsch, The Dictionary of Cultural Literacy (Get the book.)

"On that very same day, December 1, 2006, they could have lent for just 91 days and gotten an even higher rate of interest?.91 percent. One absurdity leads to another one. It made no logical sense for investors to lend short-term at higher rates than they would lend long-term. Every loan is a race against the future. Revolutions, market crashes, defaults, inflation—a loan will go bad sooner or later if it is left to go on long enough, so long-term loans are almost always at higher rates than short-term ones." - William Bonner, Lila Rajiva, Mobs, Messiahs, and Markets: Surviving the Public Spectacle in Finance and Politics (Agora Series) (Get the book.)

"Let's suppose the Silvas could find a credit-card company willing to accept a charge of $128,281, with a preferred-customer interest rate of 17 percent, and give the couple forty years to pay it off. Interest payments alone would add up to $648,872—or five times the proposed discounted settlement. Combined interest and principal payments would top out at $777,153. The Silvas would be indentured servants for the rest of their lives. With annual credit-card payments of $21,833, there would be just enough money left for food and a ghetto apartment. But nothing else. No electricity. No heat." - Donald L. Barlett and James B. Steele, Critical Condition: How Health Care in America Became Big Business (Get the book.)

"The interest rate that banks charge to corporations that are considered excellent risks. fa The prime rate is usually the lowest prevailing interest rate; if it rises, rates available to consumers will soon rise. principal The original amount of money lent, not including profits and interest. private enterprise Business carried on for profit and not owned by the government; also, the system that discourages public ownership of business; the same as free enterprise. (See private sector." - E. D. Hirsch, Joseph F. Kett, James Trefil, The New Dictionary of Cultural Literacy: What Every American Needs to Know (Get the book.)

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