Savers wrecked by low rates

A key tool in boosting economic activity is to temporarily lower interest rates. But the Federal Reserve Bank, which dropped rates to 0% in December, 2008, has plans to keep them there until at least 2015. Low rates mean that savers, those who have had the discipline and maturity to put money aside, earn virtually nothing on their savings. The Fed is determined to force them to put their money at risk in the stock market. This strong-arm policy is devastating to the elderly, who can't live on no interest and can't risk major losses of their wealth in the stock market.

The Fed’s ‘repression’ has cost savers $470 billion, Swiss Re argues

By Steve Goldstein, MarketWatch DC bureau chief

Financial repression is still high, Swiss Re argues.

WASHINGTON (MarketWatch) — Artificially low interest rates have cost U.S. savers $470 billion, according to a report released Thursday.

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Americans Can’t Retire When Bill Gross Sees Repression

Mar 25, 2014 9:42 AM ET

Twelve years after retiring as a telephone repairman, Roger Wood clocks 12 to 15 hours a week at a Lowe’s Cos. hardware store near Glen Allen, Virginia.

“About the same amount I made 30 years ago,” Wood, 69, says of his $12 hourly wage. “I’m worried about my portfolio because of low interest rates, even to the point of considering full-time again.”

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Record Low Interest Rates Stiff Savers and the Economy

By Stacy Curtin | Daily Ticker - May 31, 2012

Fearing the European debt crisis will continue to deteriorate, investors have piled into U.S. Treasuries in a flight for safety. The yield on the benchmark U.S. 10-year (^TNX) has fallen to 1.55 percent, a record low.

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Federal Reserve Expects to Keep Interest Rates Low Through Mid-2015

By SUSANNA KIM (@skimm) Sept. 13, 2012 - The Federal Reserve announced its highly-anticipated quantitative easing, or its so-called QE3, purchasing additional agency mortgage-backed securities at a pace of $40 billion per month in another effort to stimulate the struggling economy.

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