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Bernanke: Redefining "Savings" Doesn't Make Savers Richer

Thursday, November 8, 2012 - 8:26 AM
One of the painful truths about the Federal Reserve's attempt to stimulate growth in the USA post the 2008 global financial crash, is that it has effected a massive transfer of wealth from savers to spenders. Much the same thing has happened in the UK and Europe, and has been happening for a few decades now in Japan. Sub 1% interest rates do not reward savings, they penalize them. You get back less than you put in, in real terms, once you adjust for inflation, which is still running in excess of 2%. This means extremely hard times for many middle class pensioners who were relying on fixed interest returns from savings and it has forced them out of "safe" investments and into riskier investments.

Bernanke: redefining "savings" doesn't make savers richer - QFINANCE
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ShorebreakShorebreak2,621 posts since
Apr 6, 2010
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