Low Rates Of Interest Hurt Many Segments Of The Population
The best money market interest rates, just like the best CD and savings account rates, are very low right now. If you are looking for interest income in your portfolio, you are going to be extremely disappointed. With money market rates so low, it is near impossible to make any money from your money safely. In order to get something with a higher rate of interest you will have to take risk and risk right now is something that is everywhere. It is a sad time for many people because they rely on interest income and without it, their lives have been harder to live.
High yield doesn’t mean what it used to as right now, and anything that is classified as high yield is what they used to call „low yield“. No one is making much money at this time through their „safe“ investments whether those investments are in money markets, CD’s, Treasury bills or any other type of government investment vehicle. It is a waiting game right now and you just have to tighten your belt and ride this awful economy out. There will be better times ahead and we just have to get through this to get to them.
No one seems to talk much about how low rates of interest hurt retirees and older folks the most. People who are retired and living off fixed incomes ought to have much of their money in things that are safe and guaranteed by the government FDIC insurance. Right now though, anything like that is earning very little which can have an adverse effect on all older people.
Many seniors depend on interest as a big part of their revenue and with rates being so low, they are in financial trouble. As we will all grow older someday, it’s something we should all pay attention to and be concerned about. It needs to be covered in the media that this bad economy is hurting the older folks too and it isn’t just the younger working class that is suffering.
Low interest rates are really just another form of income redistribution when you think about it. They don’t hurt people who have little money and in fact help those who want to borrow because they have nothing. Those who do have money and used to make decent interest income, now make very little. Democrats always talk about income redistribution and helping the little guy and this is one way they do it under the radar.
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