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It is hilarious to me that a "high yield" savings account is considered to be ~ 1% APY

• jfengel 5y ago
  When inflation is 2%, that's to be expected. In the 80s I got 5% on savings, but inflation was more like 10%. We've had inflation <2% for a long time, and savings rates have fallen to practically nothing. If inflation rises, you'd expect banks to have to raise rates to attract your money. (Otherwise, you'd spend it now, since it will be worth less in the future.) Inflation has risen a bit in the last few months, though nowhere near the 10% rate we saw in the 80s. As for whether that will continue... I suspect not, but it's really hard to make predictions, especially about the future.
  • thatcat 5y ago
    Asset prices have inflated significantly above a 2% rate.
    • jfengel 5y ago
      Yes. All of the money pumped into the economy has gone into assets. It's not causing consumer inflation, though it's gradually creeping into the housing side of things. Mostly, it caused a big bubble in stocks, and from there spills out into other assets.
• askafriend 5y ago
  I'd much rather throw it into Tesla or Bitcoin and risk a loss than be insulted with 1%.
  • BuyMyBitcoins 5y ago
    I can expect to make more money looking out for coins on the sidewalk than I would in a year with a savings account.