He didn't count taxes. After a 28% tax bracket it would take 9,627 years to double.
I remember Jesse Jackson one time saying that people’s retirement pensions should be available for other uses.
You always hear complaints that Americans don't save enough, but if you wanted people to save, wouldn't you favor HIGHER interest rates and real low inflation? Wouldn't you want to let the market determine the interest rate?
True, and the people attending Tea Parties and those mad at the federal government in general should actually be even madder. Some (new) candidates for president and Congress need to make this point in 2010 and 2012.
This has been going on since Greenspan reduced rates again and again to help prop up the economy years ago.
No surprise, that’s what the government is best at doing, screwing the taxpayer. Not only have you been a good little saver, mister taxpayer, we won’t pay you interest while we let the banks make all the money on loans so they pay back the government first, the money you paid into the Treasury in the first place by being a good little citizen and paying your taxes, while government fiscal policies and inability to understand basic economics forced this catastrophe on us in the first place.
Then, for those stupid citizens who aren’t thrifty and borrowed money left and right and are technically bankrupt, the government will bail them out (along with the stupid financial institutions that lent the stupid citizens pretty much free money in the first place) and you, the thrifty taxpayer, will pay for that too. And so will your children and grandchildren, who will hopefully be as productive and thrifty as you are so the government and the lazy, incompetent, stupid citizens can be unproductive, wasteful and parasitic and continue to sponge off you and your legacy forever.....get used to it, chump because not only are they taxing us to death, they’re taking away our freedoms at the same time.
Low interest rates mean it's a great time to borrow money even while it's a terrible time to lend it. Get yourself a long-term loan at very low rates and do something useful -- or even just enjoyable -- with the money.
I borrowed some money from my 401(k) account to finance some expenses related to a new business I've started. I'm paying the money back -- to myself -- at a rate of 4.25% over five years. And since the interest is tax deductible, I've got a really good chance of coming out ahead in the long run.
Secret slush funds going.
People didn’t used to use banks to save money. Their nest eggs were in jars and hidden in their house or on their property. There was a reason for that. 2 generations later, people are learning that all over again.
If you think the rate is too low lend your money elsewhere at a higher rate. You don't have to have a government guarantee on the return of your capital, do you?
Nope, it's not capitalism. It's politics and campaign contributions and lobbyists. And at times it might be the many being forced to bail out the financial system because of the incompetent and reckless few.
Nooses over telephone pole crossbars comes to mind...
“It’s capitalism, I guess, but it’s not to be applauded.”
BS!!! It’s goobermint out of control!!!
My proposal: offer a new savings account at the treasury which pays the 20 year treasury rate but with annual liquidity. This would be available only to IRA’s, 401(k)’s, or personal accounts for people on social security. In addition, those retired could take money out of their retirement accounts with a special one-time 10% tax.
“It’s capitalism, I guess, but it’s not to be applauded.”
That right there is the cause of this whole mess; misunderstanding of capitalism.