< It's much better to get 90% of your purchasing power in infalted dollars than to get 50% or less after a bankruptcy sale...especially with a 12% interest rate over a number of years, a small infaltion hit is a minor problem.>
LOL, yea, assuming you're in not liquid. Most of the U.S. I suppose... screw the thrifty to save the morons
I was thinking from the prespective of banks and consumer loan companies, who get around 12% or better for funds they borrow at 7% or less. I think the rising number of credit card defaults and personal and corporate bankruptcies is
starting to hit the creditor insitituions, and they want their victims (er, clients) bailed out, just like the U.S. Taxpayer bailed out Mexico a number of years ago for the benefit of the large banks. Mexico bailout was a good thing overall, but the banks got a very nice deal out of it.
Most individual savers have been screwed with interest rate lower than inflation for a long time. Money market funds fixed that for a while, but not since the FED cut rates sharply in 2001. The oridinary person (meaning not the SI readers, well connected, or well advised) has few options for saving besides real estate, stocks, money markets, and bond funds. Real estate the only one doing well now. |
