Tuesday, October 20, 2009

Nothing new: Government steals your savings

From CNNMoney:

This is a quiz. What do the record-high Wall Street bonuses have in common with the record-low yields for savers?

Answer: They show yet another way that prudent people, especially those living on fixed incomes, are being screwed by the government's bailout of the imprudent.

Here's the deal. The government is spending trillions to keep interest rates down in order to support the economy and prop up housing prices, and those low rates have inflicted collateral damage on savers' incomes.

"It's a direct wealth transfer from savers and retirees to overly indebted borrowers," says Greg McBride, senior financial analyst at Bankrate.com.

But without the bailouts, things would be even worse. RIght?

No comments:

The dangerous dream of secession

A fundamental requirement for lasting peace and prosperity is to reject government by coercive monopolies such as we have had for all of hu...