Interest Rates Are So Low They Are Hurting People
Money market interest rates are very low right now just like they are for CD's and savings account interest rates. Anyone trying to find a decent interest income for their portfolio will be extremely disappointed as it is next to impossible to make money from interest without taking some risks. If you want to profit from your money to any meaningful extent, you are probably going to have to buy stocks or bonds and take on that risk. Investing in government backed CD's or Treasury bills is just not going to pay you enough to make it worth your while.
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 rates of interest are simply another type of income redistribution when you consider it. They do not harm people who have little cash and they help those who have nothing and are in need of loans. On the other hand, those who do have cash and used to make a respectable amount in interest income, now make very little. Democrats are always trying to take money from those who have it and give it to those that don't. These low rates of interest are just another way they are accomplising that goal.
Article Source: FxTradingStock.com
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Please check out my website if you are looking for about the best money market rates. You might also be wondering when will interest rates go up?
by: Lucy Romberg
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Date: Sat, 5 Jun 2010
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