The Fed put us in zombie ZIRP-land almost ten years ago by cutting short-term rates to zero. In ZIRP-land, senior citizens spend sleepless nights watching their wealth shrink as puny interest earnings fail to cover the cost of life. In ZIRP-land, stock prices twitch up and down, transferring wealth from the poor, old and financially unsophisticated to the rich and powerful.
I will admit that I haven’t thought this post out entirely but I , like so many other seniors, am tired of the feds putting my life savings in jeopardy. For almost my entire lifetime senior citizens who didn’t want to put their life’s savings into the risky stock market had an option to get a little less money in the bond markets. That option has completed dried since 2008 and to a lesser degree for the last decade. There is just no where that we can even hope to safely get even a pittance of interest on our hard earned savings. meanwhile the cost of living continues to rise, especially our health care costs.
I am one of the fortunate few who still has a fixed pension plan because of my thirty years of working for the same company. That gives me a substantial monthly payment. Since I live a fairly frugal life that along with social security covers most of my expenses. The money in the 401k and other savings is for enjoying my final years and to provide some relief to a few charities after I leave this earth. But watching it decrease due to the feds keeping interest at zero for so long distresses me but not nearly as much as those trying to live on other types of pension plans.
It just makes no sense to me to basically risk giving my savings to someone without expecting at least a little in return. Interest rates have been at zero for long enough to realize that they don’t do any more good than the trickle down scheme did a couple of decades ago.
Quit putting the brunt of the load on the backs of us seniors and raise interest rates to a reasonable level.