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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Brian Sullivan who wrote (9817)	5/16/2020 2:10:37 PM
From: Kirk ©	3 Recommendations Recommended By berniel Ken Adams Siddhartha Gautama Read Replies (1) \| Respond to of 26414

Who Pays for The Lack of Preparation for COVID-19? US Treasury Rates: This graph shows how savers are paying for much of the bailout of the economy... Just a short year ago you could SAFELY put money away for a year and get 2.35% interest in a T-Bill. Today that same 1-yr T-Bill will pay your 0.15%. For medium savers who might have retired with $1M in stocks and $1M in fixed income, it means that $1M in fixed income generated $23,500 last year but will only generate $1,500 this year! (or do it for $100K in fixed income and $100K in stocks... $2,300 drops to $150 extra income to supplement Social Security checks.) Play the Violins Yeah, it is a "tough problem" to have compared to people who don't have any savings and can't pay their mortgages or rent (or buy food) due to loss of income, but it is still a huge price to pay for the government not being ready like Taiwan was for this COVID-19. For stocks like Apple that had $94B in cash, the loss of interest is (assuming all in 1-yr notes) $94Bx(2.35%-0.15%)=$95Bx2.2%=$1.9B! So, Apple shareholders are effectively paying $1.9B a year for the bailout.