Originally Posted by BucEyedPea
Yeah. It's really bad. No sense in saving with that kind of return.
Which brings me to seniors on a fixed income.
Someone who is retired and say has $300k in s savings account. Right now after taxes and inflation they are net-net losing money. On a savings account!!! So that forces them into riskier investments like bonds and stocks. No place for someone in that situation but what choice do they have. Suddenly they are at the mercy of Wall St.
So naturally that person is most likely spending less and less because they are trying to preserve their capital.
Now put them in a situation where they are earning 4%-5% on a CD again and suddenly they are hitting the gut-buster more often.