Low Interest Rates Hurt More People Than Just The Rich
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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.
News outlets never seem to talk about the fact that low interest rates hurt retirees and older individuals the most. Senior citizens should have plenty of their cash in safe investments, which means it needs to be in something that is guaranteed to not go down as in certificate of deposits. As it stands right now though, that cash is earning very little in interest and that makes it difficult for these older folks who are living on a fixed income.
Since so many seniors depend on interest income as a significant part of their earnings, rates being so low means that they are in big trouble. We will all become senior's someday in the future and it's one thing we should all be concerned about. More attention should be paid to the plight of the older people in our country as they are suffering through this economic downturn just like younger people are.
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.
Article Source: Articlelogy.com
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