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I personally cashed in >$1m in CD's and bought stocks because of my fear of being left behind because of inflation. Many of my CD's were callable, so I really h
by ratsmack 5y ago
I personally cashed in >$1m in CD's and bought stocks because of my fear of being left behind because of inflation. Many of my CD's were callable, so I really had no choice.
- nomoreplease 5y agoWhy did you have 1M in CDs in the first place?
- ratsmack 5y agoI already had a bunch in stocks, so having a portion of my money in CD's made me feel all warm and fuzzy.
- arthurcolle 5y agoAre there any inflation protected CD's ? I know of TIPS from my time on a trading desk that was a few rows away from the inflation desk, but curious if there are any retail products like a CD with some level of inflation protection
- ac29 5y agoI Bonds are the closest thing I can think of.
- lubujackson 5y agoTechnically "reserves" only exist to insure against loans the banks make. Money is generally added to the economy by the banks when they trade cash for debt (i.e. make a loan). The whole idea behind giving banks more reserves is so that they can make more loans, which are capped by the government at some % of the bank's reserves. So really the government is tweaking things for banks to get around their own rules... but none of this matters if banks aren't near their cap in loans, which none of them are. So it really is just political theater to make it seem like things are getting done. Once you understand that, the supression of interest rates makes a lot more sense, because it is another way to encourage new loans (and keep existing ones manageable).