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The national average rate paid on 5-year CDs slid to 0.99% this week, the first time ever below...

The national average rate paid on 5-year CDs slid to 0.99% this week, the first time ever below 1%. Inside the Eccles Building, a central banker is smiling, hoping savers pay heed to the signal and instead buy a house, put on an addition, take a vacation, or purchase common stocks.
Comments (8)
  • Poor Texan
    , contributor
    Comments (3529) | Send Message
     
    So the official policy is that savings is bad? Great thought for the future.
    13 Aug 2012, 03:13 PM Reply Like
  • Lint
    , contributor
    Comments (391) | Send Message
     
    America gets the leadership (and monetary policy) it deserves...warped beyond belief. The savers get screwed, the lower income classes get crushed and we have yet been able to spend ourselves into prosperity. Maybe the Doomsday Preppers are onto something??
    13 Aug 2012, 03:15 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    Yes savings is bad now....what a way to go...spend spend spend is good....and this generation will learn that....
    13 Aug 2012, 03:15 PM Reply Like
  • RSI Raistlin
    , contributor
    Comments (400) | Send Message
     
    Very true PoorTexan. The sad thing is that the banks are laughing at people willing to lock up their money for 5 years under 1%. In 3 years when rates end up turning up (as they have to.......right?) people are going to be absolutely kicking themselves searching for "safe yield" at the sell low level.
    13 Aug 2012, 03:16 PM Reply Like
  • rambler1
    , contributor
    Comments (410) | Send Message
     
    I'm still waiting for the new bank problems with low rate 30 year mortgages. They'll be stuck with the equivalent of a 30 year bond having to pay more in interest to depositors and crying their losing money or having to write down portfolio's.
    13 Aug 2012, 03:27 PM Reply Like
  • RSI Raistlin
    , contributor
    Comments (400) | Send Message
     
    Never thought of that.......interesting insight.
    13 Aug 2012, 03:55 PM Reply Like
  • phxcrane
    , contributor
    Comments (415) | Send Message
     
    Its Fanny and Freddy. who will be left holding the bag. That is the taxpayers. The banks sell over 90% of their mortgages to them. You might want to consider very carefully who you vote for.
    13 Aug 2012, 05:28 PM Reply Like
  • rambler1
    , contributor
    Comments (410) | Send Message
     
    Apparently the Fed governors haven't. Or they just don't care because they won't be around then. Think Alan Greenspan.
    19 Aug 2012, 09:39 PM Reply Like
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