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Study Says Savers Have Lost $758 Billion Due To Fed Low Rates

Wednesday, April 23, 2014 - 12:38 PM
A study by MoneyRates.com released yesterday show that savers have lost $758 billion due to the Fed's low rate policy in the past five years.

Fed's low-interest-rate policies cost savers $758 billion, study says - latimes.com
9
me1004me1004370 posts since
Jan 16, 2010
Rep Points: 2,567
1. Wednesday, April 23, 2014 - 1:55 PM
Another way to look at this is that the banks and financial institutions have "saved" $758 billion due to the Fed's low rate policy.  They were the winners and we are the losers.
6
paoli2paoli21,367 posts since
Aug 10, 2011
Rep Points: 5,993
2. Wednesday, April 23, 2014 - 4:43 PM
The title of the article should be: How the Fed Stole $758 Billion From US Savers
5
ShorebreakShorebreak2,603 posts since
Apr 6, 2010
Rep Points: 14,107
3. Wednesday, April 23, 2014 - 6:00 PM
U.S. household wealth fell by about $16.4 trillion of net worth from its peak in spring 2007, about six months before the start of the recession, to when things hit bottom in the first quarter of 2009, according to figures from the Federal Reserve.
America's lost trillions in household wealth - Jun. 9, 2011 
1
Ally6770Ally6770909 posts since
Jan 16, 2010
Rep Points: 2,643
4. Wednesday, April 23, 2014 - 6:54 PM
#3  Aren't you basically stating the same information in the original post which mentions "the past 5 years"?.  That would be the 2009 era you are referring to.  They just didn't have the date in the article but it is clear this tremendous lost of wealth was what caused savers to be thrown off of the financial cliff and made it almost impossible for many savers to reach their savings goals.  It is very obvious our country has had a drastic change in net worth in these years.  It truly is an era of the "survival of the fittest.".
2
paoli2paoli21,367 posts since
Aug 10, 2011
Rep Points: 5,993
5. Wednesday, April 23, 2014 - 7:33 PM
Did you read the post? Did you read the link? It most certainly is dated on June 9, 2011.   Nothing says anything about a 5 year period. Not sure where you get it refers to 5 years. Did you read the graph? 758 billion over 5 years doesn't compare to 16.4 trillion in a much shorter time. 
1
Ally6770Ally6770909 posts since
Jan 16, 2010
Rep Points: 2,643
6. Thursday, April 24, 2014 - 6:19 AM
If the current administration was really intent to help people save money, instead of creating his new myira accounts which only addresses a small minority of the population to garner votes he should have addressed this situation of low interest rates which would benefit a vast majority of the population.
5
FARFAR106 posts since
Feb 26, 2013
Rep Points: 381
7. Thursday, April 24, 2014 - 8:41 AM
#5  I was referring to the "original" post by me1004 and it certainly does refer to 5 years.  I did read "your" post and "your" link and felt that both posts were basically stating the same thing.  Our country is in deep financial dodo for the past many years whether it is 758 billion or your 16.4 trillion.  Once you get past "billions" I don't see what the hullabaloo is all about.  We're been trashed and we just have to make the best of it until we can get new people to figure out how to undo our messes.    You are so concerned about the 16.4 trillion debt yet we are running all over the world giving money to other nations like we really have money to give.  Why don't you send your graphs to Obama and his administration and ask them if they know how much debt we are in?
1
paoli2paoli21,367 posts since
Aug 10, 2011
Rep Points: 5,993
8. Thursday, April 24, 2014 - 2:59 PM
#5 Don't know of any administration that wants people to save a lot unless there is high inflation. Then interest  rates will go up to force less spending and encourage saving. Administrations want people to spend and thus low interest rates and then they are afraid of deflation. Spending is over two thirds of our growth. Administrations want growth.  This administration wants you to know the fees you are paying when you are saving for retirement etc and want the fees you pay to be transparent.    In the 80's they pushed women to work so people would spend more and when they needed more growth they pushed using credit cards. We now have the Bureau of Consumer Protection. 

Sheila Bair said again this week we need more stimulus and no tax cuts within the stimulus this time.

#6 The article was not about the 16.4 trillion debt. Again either you did not read the article or you don't understand what you were reading. 

I hope you all have read the information that America's middle class has been declining since the 80's and now even the middle class of Canada is ahead of us. In fact only the top 5% in the US make more than the other 26 countries. The poor of Europe make more that our poor. We are #27 for income. Switzerland has mean wealth of $500,000 per person vs our  $51,600. By contrast those at the 95 percentile make 20% more than their counterparts in Canada, 26% more  than Britain and 50% more than the Netherlands. Since 2000 Canada and Britain's median income went up 19.7% while the income of the US workers went up .3%
2
Ally6770Ally6770909 posts since
Jan 16, 2010
Rep Points: 2,643
9. Thursday, April 24, 2014 - 3:21 PM
#8  If you are determined to correct certain ones of us, you really should understand to whom you are posting.  "I" am #7 yet you posted your remarks to #5 (yourself).  Are you criticizing yourself?? :)

You criticized #6 and it is beyond me why you seem to have a need to think just because some of us give our "opinions" of a post that we haven't read or understood what we read.  This is very presumptuous of you and I personally do not appreciate your making that remark about my post.  I take the time to read and do have the ability to understand what I read but prefer to only give my opinion of what I have read and not an entire thesis on every post I am responding to.  In the future, I would appreciate it if you would accept my replies as my "opinions" unless the poster specifically asks for an exact recounting of what was posted.  Thank you for your understanding and for the informative information you enjoy providing to everyone.
1
paoli2paoli21,367 posts since
Aug 10, 2011
Rep Points: 5,993
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