Remember when the banks paid you around 3 percent for saving accounts and 5 percent for a CD. They then charged around 7 percent for a mortgage loan.
The government decided everyone should have a home and did not require the 20 percent down. When the economy turned down, people with no equity in their homes lost them, causing banks to collapse.
Then the federal reserve wanted to stimulate the economy first by lowering the prime rate to less than 1 percent, then requiring banks to reduce saving accounts to less than 1 percent and CD's to maybe 2 percent.
Who did that hurt? You and me, who had savings in the bank. The Federal Reserve plan is not working. We need to change not only the socialistic government leaders but also the Federal Reserve managers.
- Peter Baranko, Whiting
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