Janet Yellen To Be Announced New Federal Reserve Chairwoman By Obama!

paoli2 | Oct 8, 2013 | 2,394 posts since 2011

I just heard over the news that Pres. Obama is planning on announcing Janet Yellen to replace Bernanke as the first woman Fed Chairwoman. It seems his choice was made by pressure from others to select a "woman" this time. This kind of irritates me because whether or not she is the best one for the job should be the criteria not her sex. It seems she plans on following the precepts of Bernanke (which we already expected) so it looks like low saver's rates will still be with us. It never gets boring, that's for sure.

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Shorebreak | Oct 8, 2013 | 4,118 posts since 2010

Hooray! Zero interest rate policy (ZIRP) for another decade. The stock markets will rally tomorrow and perhaps deposit rates will drop again. More of the same.

Maecl | Oct 8, 2013 | 102 posts since 2010

It's what we all expected. Today I calculated the interest we would be getting in retirement if we were getting the 5.50% we received on a saving account in the good old days. How depressing.

paoli2 | Oct 8, 2013 | 2,394 posts since 2011

Maeci: That was a very brave thing for you to do. I don't have enough Mylanta in the case to allow me to do that. My poor ulcers would get ulcers! Sometimes I keep thinking I must have imagined those days when we really had such great interest. At least we had a chance with it. Our beloved kids may never see those days again.

mustsavemore | Oct 8, 2013 | 63 posts since 2013

Well we don't necessarily know for sure that rates won't rise. Not much in it for me as I have so little money

Maecl | Oct 9, 2013 | 102 posts since 2010

paoli2: So true.

mustsavemore: Many of us had little money but we were getting good income which enabled our money to double in a what may have been 7years. Use the rule of 72 to figure that out. I don't remember the formula. We weren't high income, but saved what we could. With what we earn now I don't think we could live long enough.

51hh | Oct 9, 2013 | 1,713 posts since 2010

paoli2: So true.

mustsavemore: Many of us had little money but we were getting good income which enabled our money to double in a what may have been 7years. Use the rule of 72 to figure that out. I don't remember the formula. We weren't high income, but saved what we could. With what we earn now I don't think we could live long enough.

72 = APY x (duration); e.g., it will take 12 years to double the principal for an APY of 6%. FYI.

Ally6770 | Oct 9, 2013 | 2,320 posts since 2010

Years ago there was a book written by Robert E Williams that explained this. Divide interest rate into 72 to get the number of years it would take to double.