What a thrill to read this, courtesy of Tyler Durden and Zerohedge. Please read, you won’t be sorry.
Bill Gross Compares Ben Bernanke To Satan, Calls For A Bondholder-Citizen “Exorcizing” Comintern
Submitted by Tyler Durden on 02/02/2011 07:47 -0500
(Comment below is me, not Durden or Gross)
Average Americans benefit very little from the low/free interest policies of the Fed. In fact, they are harmed. In previous years, not all that long ago, retired Americans could put the bulk of their savings in safe and secure deposit instruments and get a decent return which would fund their golden years at low (make that no) risk. I remember my retired inlaws getting 9% on CDs. The current low rates are designed to FORCE everyone, regardless of situation and appropriate risk tolerance into the stock market.
Not too long ago, I was reading The Magnificent Ambersons, a book written by Boothe Tarkington in 1918. The character of the aunt takes her life savings out of her safe bank bonds, where she was earning a safe 4%(!) in order to invest them in a company that makes automobile headlamps where she is lured with projections of a 25% return. Sadly,
for Aunt Fanny, unbeknownst to her or the other investors, the automobile must maintain a minimum of 25 miles per hour for minimal light and up to 40 miles to create a light strong enough to be seen by oncoming vehicles. Bit of a problem in 1918 Indiana. And of course, Aunt Fanny loses her entire nestegg.
She was getting 4% in 1918. How many people would be thrilled to get that on a CD today?