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Fed's Low Interest Rates Crack Retirees' Nest Eggs

Monday, April 4, 2011 - 7:11 AM
This Wall Street Journal article reviews how this ultra-low interest rate environment is hurting retirees. Not everyone on the Fed is blind to this. One of the new voting members this year is sympathetic. We'll see if this leads to action later this year:
"Americans who have done everything right, have worked hard, saved their money and stayed out of debt are the ones being punished by low interest rates," says Richard Fisher, president of the Federal Reserve Bank of Dallas and a voting member of the Fed's policy-making open market committee. "That state of affairs is not sustainable for a long period of time."

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Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Monday, April 4, 2011 - 10:56 AM
What the Fed, with it's near zero rate policy, has done to retirees, on fixed-incomes who rely on their savings to supplement their meager incomes, is truly shameful. In it's zeal to transfer wealth into the stock market, Bernanke's Fed has destroyed the dreams of millions of Americans of having a safe, secure retirement after spending their working years scrimping and saving. Between the steady erosion of the value of the dollar and the continuing of historically low interest rates, savers and retirees are on the deck of the Titanic when it comes to their nest eggs. Unfortunately, there is no one out there who has the political will to stop Bernanke from continuing this financial death by a thousand cuts that has befallen prudent retirees in this country.
6
ShorebreakShorebreak2,696 posts since
Apr 6, 2010
Rep Points: 14,620
2. Monday, April 4, 2011 - 12:02 PM
Ben "is a messenger boy sent by a grocery clerk to collect a bill..." (Marlon Brando, Apocalyse Now, 1979)

http://www.youtube.com/watch?v=bymJC2mxd_w
5
CraigPDCraigPD94 posts since
Jun 12, 2010
Rep Points: 336
3. Monday, April 4, 2011 - 9:53 PM
I remember over 17% umemployment in the 80's in Michigan. My husband worked only 3 days a week for several months. I worked at a bank and mortgage rates were 14%. Heating oil went from 19.3 cents a gallon in 1973 to over $1.00 in the early 80's  and then hit $2.00 and then my husband built a wood boiler and we heated with wood we cut. I am not sure what is worse, high unemployment with high interest rates and high inflation or high unemployment, low interest rates with lower inflation. It is all painful. We all just need jobs to feed our families.  Many farms were lost because of high property taxes. Homes lost value because of high mtg rates. Just like now many people suffered.
5
Ally6770Ally6770942 posts since
Jan 16, 2010
Rep Points: 2,741
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