zerohedge.com — Bernanke's recognition of his penalizing savers with low rates as an 'issue for people' sparked an interesting note from the WSJ on how sensible and stoic savers are being herded (unsafely) into risky investments. Bernanke's insistence that "our savers collectively have to hold all the assets of the economy and a strong economy produces much better returns in general" must be juxtaposed with comments from a money manager that "I don't think that's a fair-trade" for money intended to be invested safely. By removing the last shred of hope for a rise in savings rates anytime soon, the Fed is once
Feb 6, 2012 View in Crawl 4
pivenFeb 7, 2012
the smart move is to pay down debt, any debt.
Bernanke is fostering deleveraging .
crom99Feb 6, 2012
Please. Nobody is forcing savers to put their money into risky and/or long-term investments. A better argument would just be that interest income is at an all-time low and that sucks for those of us who are saving for retirement and getting almost no return on investment.Comment is buried, click here to see the rest.
heathermgilbertFeb 7, 2012Submitter
When Bernanke prints money (which he has been doing (look up QE2 and "Operation Twist") it DEVALUES the dollar, thus making the dollars saved by "savers" worth less. This is elementary economics. Perhaps you better familiarize yourself with the concept of inflation.
crom99Feb 7, 2012
How do you derive from my comment a lack of knowledge about inflation? This is a non sequitur as far as I can tell.