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(Bloomberg)   Interest rates are so low, investors are actually losing money by just parking their cash. Bonus: Losses tied to consumers paying off their debt and not paying interest   ( divider line
    More: Cool, MBS, loan origination, Federal Housing Administration, Hebron, harp, Robert Menendez, sales managers, First Horizon National Corporation  
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3487 clicks; posted to Business » on 30 Jul 2012 at 3:35 PM (5 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»

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2012-07-30 03:46:50 PM  
7 votes:
In fact, right now if you look at the returns on US Treasuries as compared to the rate of inflation, you realize that people are actually paying US to let us borrow money from them.

(which if you understand economics, means this is an INSANE time to be cutting government spending. We should be borrowing like Banshees for long term infrastructure projects and to create jobs because we'll never be able to get the money for them this cheaply ever again.)
2012-07-30 04:10:07 PM  
2 votes:
Paid off all of my debts about two years ago, except for a car payment. Got another year or so to go on that. Being debt free is magical, and the banks can go F themselves. I'll never pay interest again if I can help it. I know that's not possible if I intend to buy a house, but that's a choice I guess I'll make later on in life. For now, I'm a happy renter.
2012-07-31 08:58:59 AM  
1 vote:

Fooby: It makes absolutely no sense to me why anyone would maintain a "savings account" or invest in stocks, etc while at the same time slowly paying off a credit card debt or car loan or mortgage payment little by little each month.

Regardless of whatever you're "making" on your investments, that money is being poured straight down the drain paying off the interest on your long-term debts.

If you want to "make" far more money, you will empty out that savings account, sell off all your stocks, etc, and pay off as much of the principal as possible on all your debts immediately.

I get what you are saying, but you fail to consider that some people hold money in savings as a "rainy day" fund. If you pay that money towards debt, you could be boned if something unexpected happens.
2012-07-31 02:05:27 AM  
1 vote:
Baby boomers have had the strange distinction of watching their children grow up to be their grandparents

/ Who also learnt financial responsibility the hard way
2012-07-30 08:34:41 PM  
1 vote:

PacManDreaming: o5iiawah: Then what the hell has the federal government been doing with gasoline tax revenues?

I'm guessing they were forking over billions of dollars in subsidies to the oil companies with it.

Oil companies dont get subsidies. This is the biggest lie out there today. The biggest profiteer off the oil industry is the US government who nary has to lift a shovel to reap billions of dollars each year. Oil companies pay not only billions in corporate income tax but the government also gets a piece of the gas tax. More billions. The couple of billion that oil companies get to write off as a loss or operation expense is not "welfare" nor does it come out of the pockets of taxpayers. It simply reduces their liability unless of course, you believe that 100% of oil company profits are property of the collective.

If I make $50k and donate $1k to charity, I have reduced my tax liability by that amount and now pay tax on the $49k. I did not get a handout from government and it did not cost anybody any money to provide this. No taxpayer is providing me a "subsidy" to support a charity. I'm still paying taxes. So are the oil companies.

So you're wrong.
2012-07-30 04:05:20 PM  
1 vote:

brap: I know this farking sucks, it's hard to find a conservative investment that keeps up with inflation in this day and age.

Why is this a bad thing? Isn't it a bad thing when too much capital is kept safe rather than being spent or devoted to productive investments? Some would say that safe conservative investments are not productive, that they inherently tend toward rent extraction.
2012-07-30 12:19:43 PM  
1 vote:
I know this farking sucks, it's hard to find a conservative investment that keeps up with inflation in this day and age.
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