>>But that’s exactly what the Federal Reserve has done by keeping interest rates low.
Our whole economy is based on easy credit. Low interest rates are all that keeps us afloat.
Well at least they’ll have the constructs for a narrative they can blame on Trump.
..... if he gets elected.
So my mom has alot of AT&T stock....almost 5% dividend/yield in her IRA. I guess Yellen wants her to have a 2.5% div. Might as well have cash/gold/bullets/toiletpaper/booze/ciggys.
So a few million retirees run out of money to live on. As long as Goldman Sachs doesn’t suffer.
Bullsh*t
All money interest should be 0%.
“Interest” is wealth sucked off by foriegners and govt waste.
This is exactly what Trump was warning in the debate.
The bursting bubble.
Not what I hoped for but better than the 2% or so that my TSP was tied to with Federal bonds and the upside is that the market can tank and we still get the guaranteed w/o losing principle.
Because of previous market dumps, we only have about 60% or so of what we would have had without the two slumps that hurt so many of us before all the QEs and current policy made the market untenable for many of us folks ready to retire or recently retired.
We're some of the "fortunates" (those who actually tried to plan by saving as much as possible and not blowing our future with extravagances) that probably won't have to touch the IRAs until we reach the age where some distributions are required by law.
I really feel for folks caught in the "bubble" that's going on now and who kept putting off the efforts to accumulate sufficient funds to actually retire. I use Walmart and it's a bit sad to see the folks in their mid 60's or even early 70's who have to keep showing up to make ends meet.
People with assets at risk should stop complaining about what the Fed is doing and start making decisions that can minimize the damage and/or make a lot of money.
A stretch but ok
Yes, prior to the 2007-8 meltdown, we were able to live off of the interest on the investments in our 401k’s. We actually were increasing our equity in those investments because we did not need all the income that the interest on those investments were providing.
Now, after suffering a 30% loss in our 401k’s thanks to the “investment banks” who got their a$$es saved by the bailout, with current interest rates, we are now consuming our principal. In less than ten years, all of what we put away in the 401k’s will be gone, gone unless they “fvck with the system again” or the government decides to “confiscate” our 401k’s to allow it to continue to pi$$ away more of our money. We are in relatively good shape because we have other assets that we can turn into cash if the need arises, but I am sure we are not the norm for those who are retired and were counting on their 401k investments to carry them to their graves. If Trump actually revives our country, he’s going to need to go on a prison building program so he can house those financial criminals and government employees who are responsible for what has occurred.
Don’t worry Folks,Legislation has already been Passed and Signed into LAW to Save the Financial System(Casino).
New Law Would Make Taxpayers Potentially Liable For TRILLIONS In Derivatives Losses
She is such an idiot. We all thought maybe she might work out, but no.
The Federal Reserve serves as the Federal Govt’s taxpayer arm of crony capitalism for the Wall Street interests. Taxpayers continue to subsidize Wall St risk where oligarchs get rich enough to corrupt and buy our politicians with their pocket change.
Oh, wait...
It’s really simple. The banks can borrow at .5% and are giving out rates as high as 30% on credit cards. The Fed is allowing banks to make money at usury rates without so much as a squeal from anyone.
The Fed understood that demographics of an aging boomer population wanting safe income would put increasing stress on the equity markets post 2005. Boomers retiring would be reallocating out of equities into fixed income. The only way to prevent this new overhead pressure on the stock market was to keep fixed income unattractive by low interest.
Secondly the enormous debt load that the government created by mismanagement and corruption needed a crutch of artificial low rates. The government should have allowed the banks to go bankrupt in 2009 where all equity by shareholders and management was zeroed out. New banks could have been initially recapitalized by govt and then made public through IPOs. Instead the government rewarded the incompetence and the Fed QE’d the stock market.
I watched Too Big To Fail last night and was thinking how small that bubble was compared to the one we have now. It is a giant worldwide Ponzi scheme that keeps paying off for a few while ripping off everyone else.
Yep, it’s killing me. I’ll have to work till I die.