There was a time when the “prosperous middle class,” not typically rich people, could put a nest egg (or a good chunk of a nest egg) into certificates of deposit and at least expect that the money would beat the rate of inflation. I met many of these people in another life. They weren’t the most savvy of investors but they were typically disciplined, had good credit, and had more often than not spent a lifetime working hard. That $200,000 in the bank (or a couple of banks) constituted their life savings and if these folks were wise, if they remained disciplined, that money could provide for them in retirement (to some degree) and maybe a decent inheritance to the next generation. Those days are long gone thanks to our beloved Fed.
Longtime Fed critic and libertarian champion Ron Paul on CNBC Wednesday blasted the idea of negative interest rates.
“This whole idea of the Federal Reserve taking interest rates down to zero, then minus … this hurts people,” Paul told “Squawk Box” in a wide-ranging interview that also included his views on the Republican presidential race…
…”The biggest problem we face is economic,” Paul said, adding the U.S. economy is much worse off than politicians admit. He blames the Fed for keeping rates low for so long, making it tough for savers to get any return and forcing people into riskier assets.