Monday, July 19, 2010

savers propping up the banks

Scott Burns wrote an interesting article, "Solvent seniors and the matrix of misery". He points out that the federal reserve's interest rate policy results in people with savings being used to prop up banks. Low interest rates cost retirees who live on savings thousands of dollars per year in lost interest, while increasing profits for banks.

So retirees living on savings account or bond interest are essentially paying for Citigroup's return to solvency, and the executive's bonuses. It seems to be an especially unfair transfer of wealth, that has not gotten much attention in the mainstream media.
Link to Scott Burns article

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