In America savers get screwed.

[BigBagel]

http://www.nytimes.com/2009/12/26/yo...er=rss&emc=rss

My favorite quote from the article:
“What the average citizen doesn’t explicitly understand is that a significant part of the government’s plan to repair the financial system and the economy is to pay savers nothing and allow damaged financial institutions to earn a nice, guaranteed spread,” said William H. Gross, co-chief investment officer of the Pacific Investment Management Company, or Pimco. “It’s capitalism, I guess, but it’s not to be applauded.”

He thinks that's capitalism?

[touchring]

Re: In America savers get screwed.

http://www.nytimes.com/2009/12/26/yo...er=rss&emc=rss

My favorite quote from the article:
“What the average citizen doesn’t explicitly understand is that a significant part of the government’s plan to repair the financial system and the economy is to pay savers nothing and allow damaged financial institutions to earn a nice, guaranteed spread,” said William H. Gross, co-chief investment officer of the Pacific Investment Management Company, or Pimco. “It’s capitalism, I guess, but it’s not to be applauded.”

He thinks that's capitalism?

That's called corruption.

[grapejelly]

Re: In America savers get screwed.

http://www.nytimes.com/2009/12/26/yo...er=rss&emc=rss

My favorite quote from the article:
“What the average citizen doesn’t explicitly understand is that a significant part of the government’s plan to repair the financial system and the economy is to pay savers nothing and allow damaged financial institutions to earn a nice, guaranteed spread,” said William H. Gross, co-chief investment officer of the Pacific Investment Management Company, or Pimco. “It’s capitalism, I guess, but it’s not to be applauded.”

He thinks that's capitalism?

EXACTLY what I thought when I read that. Thanks for bringing it to our attention. Awful, ain't it? Apparently socialism = capitalism to Mr. Gross.

[LargoWinch]

Re: In America savers get screwed.

http://www.nytimes.com/2009/12/26/yo...er=rss&emc=rss

My favorite quote from the article:
“What the average citizen doesn’t explicitly understand is that a significant part of the government’s plan to repair the financial system and the economy is to pay savers nothing and allow damaged financial institutions to earn a nice, guaranteed spread,” said William H. Gross, co-chief investment officer of the Pacific Investment Management Company, or Pimco. “It’s capitalism, I guess, but it’s not to be applauded.”

He thinks that's capitalism?

Managed interest rates have nothing to do with capitalism.

[cindykimlisa]

Re: In America savers get screwed.

http://www.nytimes.com/2009/12/26/yo...er=rss&emc=rss

My favorite quote from the article:
“What the average citizen doesn’t explicitly understand is that a significant part of the government’s plan to repair the financial system and the economy is to pay savers nothing and allow damaged financial institutions to earn a nice, guaranteed spread,” said William H. Gross, co-chief investment officer of the Pacific Investment Management Company, or Pimco. “It’s capitalism, I guess, but it’s not to be applauded.”

He thinks that's capitalism?

Mostly Senior adult savers re getting screwed.

Annuities are hyped on them by bank investment people

Teaser rate cds are rolled over at very low rates automatically

They like short term cds rather than using a laddering concept.

They trust the bankers

They dont buy treasuries: they keep their money in annuities and the banks where it is "safe"

Not long ago I helped a senior adult redistribute her wealth into laddered cds so that she was able to earn ten times the interest per year she was earning. The rate went from one half of one percent on everthing to five percent average on everything. It all stayed in the same bank just different accounts.