Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts
Back to Comments and Questions

Reason Behind The Anger Of The Low Interest Rate Environment

Wednesday, August 22, 2012 - 6:14 AM
We have heard Chairman Bernanke explain why interest rates need to stay low from an economics point of view. He and many other economists and politicians don't seem to understand the anger from savers. This Bankrate article does a good job to explain why there's so much anger:
In fact, I'd bet a lot of savers are looking back on the sacrifices they made over the years to amass their savings -- all the forgone vacations, the unbought clothes, the beat-up cars -- and looking at their account statements and asking, "1 percent on a five-year CD? This is why I celebrated my 30th wedding anniversary at Shoney's? This is why I drove a Mercury Topaz for 12 years?"

Some politicians have done a good job to explain to Chairman Bernanke why there is so much anger.
8
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,702
1. Wednesday, August 22, 2012 - 6:11 PM
Just read a post from one of our members stating Romney seems to have changed his mine about replacing Bernanke when his term expires.  Romney definitely gave us the impression he was going to replace him and I am just so irritated that he is pulling this on us.  Thank goodness we found out before we went to vote.  Looks like we can't believe anything any politician says these days!
3
paoli2paoli21,142 posts since
Aug 10, 2011
Rep Points: 5,094
2. Wednesday, August 22, 2012 - 6:49 PM
We don't know if Romney has changed his mind just because one of his advisors is giving his own opinion. Let's hear what the candidate says before jumping to any conclusions.
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
3. Wednesday, August 22, 2012 - 7:03 PM
Lou:  Why would any of Romney's advisors be so stupid as to make such a statement when he knows it can cost Romney votes and probably the presidency?  I can't believe he would make such a statement public unless he knew it is the way Romney thinks also.   I have sent some emails out about this and hope I can find out what Romney's stand is on Bernanke.  If Bernanke is in, my vote for Romney is out.
3
paoli2paoli21,142 posts since
Aug 10, 2011
Rep Points: 5,094
4. Wednesday, August 22, 2012 - 10:50 PM
I believe you should be careful what you wish for.  Even if Romney is elected and even if he replaces Bernanke, his policies are targetted at investors, not savers, e.g. 0% capital gains.  He wants people to take risks (stocks) to make money. He made his wealth at Bain through leveraged buyouts.  That background would favor lower rates.  Poliitians all lie in campaign season. Whether he said he will keep Bernanke or not does not matter.  That will not change that he will have policies and appointments that will be unfavorable to the general safety sought by savers.  (Disclosure: I am an independent and dislike both candidates. I am still undecided.  On this sole issue, I am more comfortable with what I know from Obama (and Bernanke) than what I do not know from Romney).
8
band58band582 posts since
Jun 25, 2012
Rep Points: 9
5. Thursday, August 23, 2012 - 12:13 AM
Band58, if you favor the zero interest rate policy, the endless QE's and other machinations of the Fed (operation twist), then, by all means, vote for Obama. You will almost be guaranteed to have your savings seriously eroded by inflation and the very real possibility of running out of money during your lifetime. It's your choice.

You could also commit suicide, but no rational or sane person would do this voluntarily.
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
6. Thursday, August 23, 2012 - 4:23 AM
Here's a CNNMoney article on what Romney's economic adviser said about Chairman Bernanke.
2
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,702
7. Thursday, August 23, 2012 - 8:15 AM
Dear CNN:  I know you're trying to meet a publishing deadline, but your editing is a little off.   
Bernanke has "done a very good job" running the nation's central bank.
 

Bernanke has "done a very good job" running the nation's savers into the ground


 
"Chairman Bernanke and his colleagues are people acting in the best interest of the economy in their judgment," he said.
 

"Chairman Bernanke and his colleagues are people acting in their best interests". 

There.  Fixed it for you. 

You're welcome.   
4
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
Reply