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General Electric Company Message Board

  • rembrandt.john rembrandt.john Apr 6, 2013 10:28 AM Flag

    Fed forcing Grandma to put money into risky stock market

    A financial advisor I work with is putting all of his older fixed income clients in to the stock market.
    Treasuries and CD's paying nothing because the Fed has set interest rates at 0%.
    So those that saved their whole life, are now the minority.......the Fed would rather support the majority of Americans that are deep in debt........
    I wonder wha the next Fed induced bubble could possibly be?????

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    • "the Fed would rather support the majority of Americans that are deep in debt........"

      Let’s say you are the CFO of a company. Someone comes to you with a potential investment in production and the project has a 6% ROI. Do you invest in the project? Will that depends, if your cost of funds in 8% then the answer is no. The cost of funds is the rate at which you can borrow, so you by keeping the interest rates low you are encouraging investments by private firms. If on the other hand your cost of funds is 4% then you should invest. Thus low interest rates encourage investments which should stimulate the economy.

    • Buy Gold, Silver, Food, Amoo, and a safe place to store it. A win. win if all hell breaks out.

    • The Fed is leading the Retirees over fiscal cliff.....I would still keep my money in fixed income mutaul funds until there is a market correction of at least 30-40 is going to happen once enough monies have been moved from fixed income into stock/bonds.

    • Typical right wing garbage from the brainwashed. The TRUTH is that the overwhelming majority of people who live off their savings are millionaires. And those savings are stocks and bonds NOT CDs or savings accounts.

      The REAL “grandma” lives off of Social Security, pensions and family assistance and NOT savings account interest which historically, has ALWAYS been insufficient to beat inflation.

      But to rembrandt.john and his ilk, the chance to spew absurd propaganda is so much more personally satisfying than repeating truth and economic reality. (And they wonder why they went up in flames this past November with their voodoo economic theories.)

      There are absolutely NO factual indicators that Americans are in any way being harmed by low interest rates on personal savings. So johnny’s weepy tale of woe about “those that saved their whole life” is as bogus as all the rest of his brainwashed drivel.

    • John when I was doing financial advisor work I had everyone in the stock market albeit in different percentages of their total portfolios.

    • drstone3 Apr 6, 2013 11:08 AM Flag

      rembrandt.john and fron70 • Your both correct.

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