Twisted Titan
10th November 2010, 08:38 AM
And Since Gold doesnt pay dividend whatever shall we do dear friends?
http://blogs.barrons.com/stockstowatchtoday/2010/11/08/cds-fall-below-1-first-time-since-50s/
CDs Fall Below 1% First Time Since ’50s
Fewer people are taking out loans, and banks are just delighted to offer them less and less for the privilege: Even as consumer debt continues to wind down, banks are showing less inclination to ease terms of loans, and the payoff they’re offering for various consumer deposits just keeps going lower.
Dow Jones Newswires’s Katy Burne this afternoon reports that rates on certificates of deposit, considered the “pillow” among U.S. consumer deposit products, fell below 1% for the first time since the 1950s, according to data by Market Rates Insight.
The average CD yield today is 0.98%, the firm notes, having fallen below 1% on average last month. Market Rates tracks data going back 20 years, but by using Fed Reserve data, writes Burne, the firm has been able to estimate that the current rate is lower than it was in the early ’50s.
Savings accounts and other products had already fallen below 1% this summer, and CDs were the last to go.
This comes as the latest Fed Reserve survey notes consumers continued to pare their debts overall in Q3, with total credit of $11.6 trillion falling almost 1% from Q2, according to the writeup by the Journal’s Deborah Lynn Blumberg.
That sounds about consistent with the Fed’s survey of loan officers at 57 domestic banks in October showed that fewer banks were increasing their willingness to loan than was the case in previous surveys, and “small net fractions of banks reported having tightened spreads of interest rates on credit cards over their cost of funds and reduced the size of credit lines on existing credit card accounts.” While large banks saw an increase in demand for consumer loans, other banks were saying demand fell.
http://blogs.barrons.com/stockstowatchtoday/2010/11/08/cds-fall-below-1-first-time-since-50s/
CDs Fall Below 1% First Time Since ’50s
Fewer people are taking out loans, and banks are just delighted to offer them less and less for the privilege: Even as consumer debt continues to wind down, banks are showing less inclination to ease terms of loans, and the payoff they’re offering for various consumer deposits just keeps going lower.
Dow Jones Newswires’s Katy Burne this afternoon reports that rates on certificates of deposit, considered the “pillow” among U.S. consumer deposit products, fell below 1% for the first time since the 1950s, according to data by Market Rates Insight.
The average CD yield today is 0.98%, the firm notes, having fallen below 1% on average last month. Market Rates tracks data going back 20 years, but by using Fed Reserve data, writes Burne, the firm has been able to estimate that the current rate is lower than it was in the early ’50s.
Savings accounts and other products had already fallen below 1% this summer, and CDs were the last to go.
This comes as the latest Fed Reserve survey notes consumers continued to pare their debts overall in Q3, with total credit of $11.6 trillion falling almost 1% from Q2, according to the writeup by the Journal’s Deborah Lynn Blumberg.
That sounds about consistent with the Fed’s survey of loan officers at 57 domestic banks in October showed that fewer banks were increasing their willingness to loan than was the case in previous surveys, and “small net fractions of banks reported having tightened spreads of interest rates on credit cards over their cost of funds and reduced the size of credit lines on existing credit card accounts.” While large banks saw an increase in demand for consumer loans, other banks were saying demand fell.