Freemium

What does Freemium means?

Freemium is synonymous with the terms “free” and “advanced” and is a pricing strategy that provides products or services (usually digital products or applications such as software, media, games or web services) for free, but Other features of the extended software free version feature, service or virtual (online) or physical (offline) items are charged (premium). This business model has been used in the software industry since the 1980s. A subset of this model used by the video game industry is called a free game.

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    Economists tip another rates rise as we head into 2017. Read More

    But this is not the first time that central bankers have pushed rates down.

    To find out what actually happened when that happened, we have to take the numbers with a pinch of salt. While it might be correct to call Fed Chairman Ben Bernanke’s statements on rate hike “hyperbolic,” it is a stretch to say that rate hikes, as in the case of the past decade, have not occurred.

    Take, for instance, the first rate hike announced by Bernanke in 2009 when he dropped the target interest rate from its current near-zero level of 0.25 percent to 0.25 percent. Bernanke’s rate hike was seen as the price of going from negative interest rates to positive.

    The second rate hike Bernanke announced was the $1.2 trillion asset purchase program, but the Fed also raised the target repo rate from 5 percent to 6.5 percent as well as the overnight overnight repo rate from 6.25 percent to 8 percent. All of these measures took effect at the same time, making these rates the first and only time the Fed has ever done both in one move.

    Bernanke’s first rate hike and Fed’s first real rate hike took place in December of that year. As of July of 2015, the Fed has held both the target repo rate and overnight repo rate below zero.

    The last time the Fed did both in one move? December of 1999, when it initiated a $1.6 trillion in bond purchases at the same time as it had signaled that it was considering further bond purchases. It wasn’t until June of 1999 that Fed officials lifted the target repo rate to 6 percent.

    Here is the latest statement from the Fed:

    “…On the first date of the new year, we extended our $1.2 trillion $75 billion purchase program of securities and mortgage-backed securities to include $75 billion of additional assets, to help support ongoing economic and economic-viable progress….Beginning at the close of business on December 8, 2016, we continue to be consistent in raising our key rate, to the extent possible without causing an interest rate shock.”

    The $75 billion in purchases that were made in February and March and continued through the rest of the year did create jobs, boosted the economy, and helped create enough money for consumer credit.

    The next big Fed rate hike? August of this year when the Fed raised the target rate to near zero and then extended the program to all forms of debt until the end of December of 2017.

    This time, Fed officials have indicated that they are planning to expand their debt programs to consumer and business debts in the future.

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