Poor Granny

By Econ70 | 11/07/2011
A red coleman logo is shown.

To put the absolutely dismal interest rates we are getting on savings into perspective think of it this way. The highest yielding 1-yr CD pays 1%. At that rate, it takes 70 years to double your money. By contrast at 5% it takes only 14 years. And, at 10%, it takes just 7 glorious years.…

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Can I Interest you?

By Econ70 | 09/22/2011
A new york state association of realtors logo.

While low interest rates are designed to encourage consumers and businesses to borrow and invest (with little success) the policy has hurt millions of older and retired persons. With money market funds paying 0.10%, 5-yr Treasuries paying 1.0% and 10-yr Treasuries paying 2.0%, interest income has drastically fallen. These folks now eat out less, buy…

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Winners and Losers

By Econ70 | 05/26/2011
A picture of the logo for hulte mortgage.

Because Quantitative Easing Two (QE2), which is soon ending, forced interest rates down to record lows, stocks and commodities soared as investors’ searched for better returns than those available on Treasuries. US exporters also enjoyed the lift they received from the weak dollar. But, seniors were pounded as their savings have been earning virtually nothing.…

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