Many could see their income they earn on their savings drop by more than half if they are currently locked into short-term savings deals that offer high rates of return, experts warned. Full Story »
Posted by Michael Bugeja
Finally, a news story that covers what the U.S. media have either forgotten, are ignorant of, or are just plain too capitalistic to acknowledge: When the Feds cut interest rates to near zero, people who didn't gamble or take risks or max out their credit cards are the ones who suffer--mostly elderly on fixed income. Their savings accounts won't provide the means to subsist, and many will lose their houses with no government bailout for that.
He said: "Following a period of high, inflated savings rates many will have benefited by locking into fixed rate bonds. This will see a vast number of savers facing a real shock in 2009 when they face the reality of falling rates. “It is important that savers make a note of bond maturity dates as often banks will default you to very poor paying accounts.”
This passes for sage advice to people who save.
Shame on the media for focusing only on mortgage rates associated with the subprime and the government for propagandizing that and the credit crunch--all to maintain the farce that is the Dow. Shame on the media for not disclosing how the banks are using the trillions in government bailout. (See the link from Motley Fool below.)