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Commentary: Low-Interest Locusts

Saturday, August 18, 2012 - 12:14 PM
From Reuters:
Holding down interest rates to prop up banks and the economy and help the already rich buy assets on the cheap, amounts to an official policy to take from the ants who saved for their old age and give to the Wall Street grasshoppers. Given the economic devastation this causes, it is more accurate to say to give to the financial locusts.

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6
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,699
1. Saturday, August 18, 2012 - 3:19 PM
Ken, I'd guess the overwhelming majority of your readers are ants who have saved prudently in order to support themselves in their golden years. 

As to the article's quote that 
"Millions of older Americans relying on interest income will, thanks to the Fed, run out of savings before they run out of time, a prescription for another taxpayer bailout, though this time one with a stronger moral case than rescuing the fortunes of profligate bankers and those who foolishly invested in the companies they run."

good luck with that hoped-for taxpayer bailout.    Unfortunately, morality appears to be in short supply in our governing officials, whose moral compass in most cases points not to “right” or “wrong” but to “politically expedient/ advantageous /profitable" or "not”.  We have all seen in which direction the needle points most often. 
4
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
2. Saturday, August 18, 2012 - 4:12 PM
The column by David Cay Johnston is right on the mark. This on-going policy of historically low interest rates is devastating and will create a whole new underclass who don't have near the political power to be bailed out like the too big to fail banks. Besides, that generation of savers would be too proud to ask for a bail out anyway.
3
ShorebreakShorebreak2,371 posts since
Apr 6, 2010
Rep Points: 12,629
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