Loading ...So the gov’t knows everything. And probably figures a part of the public is well off. If rates keep climbing, more money will go there. A friend of mine needed a few hundred thousand dollars, and took a mortgage. He didn’t want to sell some stocks because he did NOT want to pay the taxes on the profits.
See how the system works? It wants you to put money in, but not take any out. If your stocks keep going up it makes you add more of your excess income. Nobody has their money. Its all been handed over for the greater good.
The Fed probably sees all the excess money supply in stocks and real estate, and if they pull it out to spend on things it causes inflation. So they raise the rates and take money out of stocks or real estate and put it in the bank instead.
Just like the 1970s. They kept raising rates to make people stop spending and stop driving prices higher, and let Daddy hold the money. And you leave it there for the interest income. Remember those days? If grand pa had a couple hundred K he could live off the interest payments. Maybe that will come back. Reversal of present days.