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Saving money doesn't make sense in an inflationary environment, where credit is easily available, and interest rates are 0%.
by ArkanExplorer 5y ago
Saving money doesn't make sense in an inflationary environment, where credit is easily available, and interest rates are 0%.
- lotsofpulp 5y agoSaving money in a savings account does not. Investing money does make sense.
- nealabq 5y agoI think what you mean is it's a good idea to borrow at the current low interest rates and put the money into an inflating asset. Aka leverage. A good idea if money is losing value (inflation) faster than the cost of money (interest rates). AND if you can find an asset that will gain value faster than (interest rate) - (inflation). After discounting for risk and volatility. But asset prices appear to running ahead of inflation right now, and thus risky. Still, the Federal Govt and Federal Reserve appear to be interfering in the price-setting mechanisms of the market in new ways lately. Really since 2008. Signaling that (upper)middle-class property speculators will have some protection from rising interest rates. And too-big-to-fail banks and perhaps large employers will also be protected. What's not clear is how much control the Feds really have. And how far they're willing to go.