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I agree with this too. Savings accounts became a thing of the past 20 years ago or more; the Fed wiped out returns on them with permanently low interest rates.
by titzer 5y ago
I agree with this too. Savings accounts became a thing of the past 20 years ago or more; the Fed wiped out returns on them with permanently low interest rates. It was deliberate to get that cash into the stock market.
The whole shebang was absolutely engineered to make the stock market the center of all fiscal policy, centralizing all risk and driving all decision-making towards keeping that Jenga tower piling up.
- polishdude20 5y agoMakes me think all the articles and advice to invest in index funds were all part of this plan too.
- mschuster91 5y agoThe idea of investing into an index fund is pretty solid in any case. The money from savings accounts ends up on the stock market just the same, only with the bank pocketing the profits between the savings account interest and the rise of the usual indices.
- reducesuffering 5y agoDon't US banks have financial regulations that they can't just take savings deposits and buy stocks? I thought they have narrow leeway with risk and deposits are mostly used for loans.
- polishdude20 5y agoYeah that's true. Although I guess the bank guarantees your savings will still be the same amount if their investments go down?