Savings in Danger?

I upvoted this story on Reddit, which you can see in the sidebar (or, apparently, bottom bar on old versions of IE), but I think it deserves extra consideration:

A Society that Punishes Savers

Essentially it argues that high inflation combined with low interest rates means that keeping money in a money market, savings, or even the stock market short term will lose you money. There really isn’t a reliable way not to lose your money, if you are trying to save it.

Advertisements

4 Responses

  1. SHOEBOX UNDER THE BED, SON!

  2. Just saying that high inflation and low interest rates hurts saving does not tell the whole story here though. First, who is “high” (this is relative) inflation and low interest rates good for? Homeowners and anyone else who is a net lender (basically everyone these days). Second, what kind of savers is this bad for? People who primarily do their saving in bonds, money markets, etc… In other words people who are looking for income not capital gains (like old people). So basically, this is bad for old people.

  3. Also, hey Greg what’s going on?

  4. I do my savings in a savings account, mainly because the markets are so volatile, I haven’t decided what to invest in yet. So, it’s bad for me. I am a homeowner atm, but not for long.

    What’s going on is I’m blogging, trying to stay healthy and sane, and being me. What’s going on with you? (start a blog and tell me there, or Facebook is fine too).

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: