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To: The Ox who wrote (56817)7/9/2012 8:16:53 AM
From: bruwin  Read Replies (1) | Respond to of 95738
 
"We have spent enough time penalizing every person who ever "played the game right" here in the USA. Enough already. Raise rates. Let those who have played right and SAVED money, get a fair and decent return on that same money. Stop penalizing every person in retirement, every person with savings, everyone who "played the game right".

I'd say you're absolutely correct here, TO.
There must be many retired folk who have their savings/investments in various government bond funds because those are regarded as fairly "safe investments" and are not subject to the vagaries of stock markets. At the current time they are getting virtually no return on those investments.
And if interest rates are low then dividend yields, in general, are not likely to be that much different. And to get that dividend folk need to own the company stock, which puts their capital at risk should the general stock market go "south".



To: The Ox who wrote (56817)7/9/2012 12:55:03 PM
From: Return to Sender1 Recommendation  Read Replies (1) | Respond to of 95738
 
To me the trouble is that the FED and every branch of the government has been consistently trying to create wealth in one asset class at the expense of so many others.

Interest rates are going to rise at some point in the future. Right now the FED has its mandate which is to make the stock market and dividend paying stocks in particular look inviting to investors by keeping rates low. What other alternatives do we have?

The problem with raising rates is that then it becomes a question of are you getting a good enough return on your CD, treasury bond, or whatever, to keep up with inflation? And if rates are raised too quickly then what happens to an already questionable recovery?

I don't have the answers. I just know I don't like the fact we have to ask these questions because we already know that what has been done thus far is not working well enough.

RtS