Savers Did Not Cause Financial Crisis, But Get Hurt By Low Interest Rates

During this financial crisis over the past four years, in an effort to rescue Big Banks the Federal Reserve has lowered interest rates to 0.2%.  Therefore, people who have raised their savings to cushion themselves against loss of jobs or homes have earned almost nothing on it.  These people have done nothing to cause the financial crisis while the Big Banks who caused it got rescued.  Homeowners, though, can refinance their mortgages to loans with lower interest rates.  However, people have not purchased homes at the rates they used to most likely due to uncertain long-term employment prospects.  It is also likely that many people are being more deliberate in which banks they take out big loans from to purchase cars or homes.


http://www.nytimes.com/2012/03/04/business/low-rates-for-savers-are-reason-for-complaint-fair-game.html?_r=3&ref=business

Shrinking U.S. Labor Force (For 2/8/12)

Last month, the unemployment rate fell to 8.3%, its lowest rate in three years. But, Federal Reserve Chairman Ben Bernanke believes that it masks the lack of jobs. The number of people of working age who quit looking for work has risen as they cannot find jobs. Others have been forced into part-time work. Of Americans 16 or older, 88 million of them had no job and were not searching for one. Only 63.7% of these Americans were in the labor force last month. This is the lowest rate since May 1983. Some Fed officials have hope for growth. Average wages grew 1.9% last month from the same time last year. http://www.bloomberg.com/news/2012-02-08/jobless-decline-masks-drop-in-u-s-labor-force-as-fewer-seek-work-economy.html

Federal Reserve Emergency Loans Totaled $29 Trillion Over 3 Years (for 12/17/11)

At least $29.616 trillion in emergency loans both in the U.S. and Internationally since the 2008 Financial Crisis. Much of this lending was to shadow banks, institutions with high leverage that can put the economy at risk. Through March 2009, banks made $13 billion of income from low- interest loans. http://www.alternet.org/economy/153462/Bail-out_Bombshell%3A_Fed_%22Emergency%22_Bank_Rescue_Totaled_%2429_Trillion_Over_Three_Years/