[SeekAndFind]

The question is, if putting your money in the bank results in a -0.1 loss of your capital ( not including inflation ), where’s the incentive to save?

But the next question is, if you can’t pit money in a bank, what are the alternatives?

[Fee]

Well to do people who do not want to invest in stocks and bonds, will buy hard assets such as property, precious metals, farmland, expensive artwork, wines, and antiques.

[Red Badger]

Stock market, bonds, munis, Vegas, Lotto....................

[Red Badger]

Not to mention drug dealing, pimping and scams of various sorts...............

[grania]

where's the incentive to save?

This has been going on for so long now that there's going to be at least a generation totally unprepared financially for retirement, and not having the pensions and 401Ks to supplement their Social Security checks.