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To: sickoflibs
The zero-interest-rate policy of the Fed is sold to the public as a benign economic rescue in the public interest

It's cost me thousands over the past five or more years. Money market accounts pay next to nothing on uninvested balances and CDs are little better. It's been actually punishing for people who save money and always invest conservatively in savings accounts and CDs. Many older workers and retirees used to earn decent income supplements from CDs paying around 5%, but no more.

Savers who invest conservatively have been royally screwed for the benefit of higher risk investors and the gov't's stupid fiscal policies and the role they played to screw up the mortgage industry and the nation's financial system in general.

12 posted on 11/28/2009 8:35:23 PM PST by Will88
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To: Will88

You are absolutely right. The zero rate policy means that no one is paid for passive savings anymore. The original purpose of a bank was to be an intermediary between savers and borrowers. Not many banks making money that way anymore. And all these retirement plans are accruing nothing more than the return of capital—and that capital will be devalued when you get it back. There is no incentive to save, and every incentive to put your assets at risk. Which is what I am doing, but I know I am gambling(I got clobbered last year). Buy gold.


15 posted on 11/28/2009 10:42:43 PM PST by Sicvee (Sicvee)
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