Nolondil Wrote:
-------------------------------------------------------
>

Quote

> Eddie Larry Wrote:
> > I think that the Fed will be in the rate
> lowering
> > mode for quite some time Kris. Given the rapid
> > aging of the world population and a concomitant
> > flight to safety, rates can go much lower.
> IMO.
>

>
> I don't understand your logic here. Lower rates
> are generally bad for older people, who are
> more reliant on interest for at least a major part
> of their income. Also, it was the low rates that
> were ruining the banking business and driving
> major banks like Wells Fargo to invent accounts
> and otherwise maneuver people into spending money
> they didn't want to spend.
>
> Do you know the current rate? I think it's 2.25
> percent at the moment. Not very high at all, and
> so not much room before going back into "negative
> interest" (also called "quantitative easing").

There's also no incentive to save when rates are so low. You might as well spend it.