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Fed's Rate Tactics Have Decimated Seniors

Tuesday, February 12, 2013 - 5:46 AM
"The Federal Reserve’s near-zero-interest-rate policy hasn’t worked, pulling away income from senior citizens without any benefit on the lending side, says **** Bove, star bank analyst for Rafferty Capital Markets."

“The primary reason for that is because interest rates have literally been decimated, and in the process of decimating these interest rates, we’ve removed from that portion of the population who is retired a good portion of the money that they expected to live on.”


http://www.moneynews.com/newswidget/Bove-Fed-seniors-lending/2013/02/08/id/489573?promo_code=11103-1&utm_source=11103Real_Clear_Markets&utm_medium=nmwidget&utm_campaign=widgetphase1
11
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
1. Tuesday, February 12, 2013 - 6:53 AM
“And yet this [banking] industry is sitting here earning the most money it’s ever earned in its history.”

That tells it all right there. The Federal Reserve has engineered one of the largest transfers of wealth in history. Right into the coffers of the megabanks.
10
ShorebreakShorebreak2,367 posts since
Apr 6, 2010
Rep Points: 12,600
2. Wednesday, February 13, 2013 - 7:53 PM
When a Roman Legion showed cowardice in battle, the Emperor could order "decimation", where the troopers would be lined up, and every tenth one would be summarily killed. The Latin root for the word, obviously, is ten, and (technically) represents a random depletion of one-tenth of assets.

Since our long-term CDs have gone from 6% to 2%, I'd say we've been more than decimated, at least in our fixed-income allocations. Two-thirds-imated?
3
BozoBozo135 posts since
Feb 14, 2011
Rep Points: 917
3. Thursday, February 14, 2013 - 12:52 AM
Maybe we should line up our Federal Reserve bankers and mete out the punishment just like in Roman times. I bet you we would see an immediate increase in the Fed funds rate.
3
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
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