FATCA

Message boards : Politics : FATCA
Message board moderation

To post messages, you must log in.

Previous · 1 · 2

AuthorMessage
Profile janneseti
Avatar

Send message
Joined: 14 Oct 09
Posts: 14106
Credit: 655,366
RAC: 0
Sweden
Message 1593830 - Posted: 29 Oct 2014, 13:59:55 UTC - in response to Message 1593822.  
Last modified: 29 Oct 2014, 14:15:59 UTC


@Janneseti,
It seems that you are confusing a few things as well. According to your link:

http://www.tradingeconomics.com/united-states/indicators

Government Bond 10Y 2.28 2.50 6.37 Percent 2014-10-28 Daily


That is the 10 year Bond rate, which is the interest rate which the US Government pays investors to loan IT (the US Federal Government) money. It has nothing to do with the Discount Rate (the interest rate the US Federal Reserve Bank charges regular banks in the USA to loan money to them) or to Gary's quoted Federal Funds rate (which is the rate that regular banks in the USA charges other regular banks in the USA to loan THEM money).

Yes, all this can, at times, get a little confusing, but then it is not exactly Rocket Science.


To the Swedish IRS it is very much rocket science:)
At least to the people I talked to.
There are more people than I who wonders how much tax you pay to different countries.
And nobody can answer!
I thought they just had to look on their computers and see where my tax payments goes.

Another problem is the nomenclature which seems to differ between countries.

My solution is to sell my investments:)
UK lost one more taxpayer. Or is it US?? Who knows...

Thanks all for your help.
I have learnt a lot:)

A consequence of low interest rates.
Expect house prices shoots up again. Riksbank's zero interest rate makes it more cheaper to borrow, and that more can afford to bid on housing - while the supply in the big cities is rather small and many compete to buy.
ID: 1593830 · Report as offensive
Profile janneseti
Avatar

Send message
Joined: 14 Oct 09
Posts: 14106
Credit: 655,366
RAC: 0
Sweden
Message 1593846 - Posted: 29 Oct 2014, 14:51:09 UTC - in response to Message 1593829.  

http://en.wikipedia.org/wiki/Discount_window
The interest rate charged on such loans by a central bank is called the discount rate, base rate, or repo rate, and is separate and distinct from the prime rate. It is also not the same thing as the federal funds rate and its equivalents in other currencies, which determine the rate at which banks lend money to each other. In recent years, the discount rate has been approximately a percentage point above the federal funds rate (see Lombard credit). Because of this, it is a relatively unimportant factor in the control of the money supply and is only taken advantage of at large volume during emergencies.


OBW that 0.09% fed funds rate, you will rarely find a bank paying you more than that rate on your checking account. They have to make money.

I found this definition for repo rate which I was looking for. (Why 3 different names for the same thing?)
The discount rate at which a central bank repurchases government securities from the commercial banks, depending on the level of money supply it decides to maintain in the country's monetary system. To temporarily expand the money supply, the central bank decreases repo rates (so that banks can swap their holdings of government securities for cash). To contract the money supply it increases the repo rates. Alternatively, the central bank decides on a desired level of money supply and lets the market determine the appropriate repo rate. Repo is short for repossession.

Read more: http://www.businessdictionary.com/definition/repo-rate.html#ixzz3HXsVn8pW
ID: 1593846 · Report as offensive
Previous · 1 · 2

Message boards : Politics : FATCA


 
©2026 University of California
 
SETI@home and Astropulse are funded by grants from the National Science Foundation, NASA, and donations from SETI@home volunteers. AstroPulse is funded in part by the NSF through grant AST-0307956.