PANIC!! – The Interest Rates Are Above 3%!!

I can only say one thing about the title above.


I know all you Millennials and GenZers are used to getting all us Baby Boomers savings for free, but I have to inform you that is not normal. I have an account with almost $200,000 in it, and it gets about $5/month interest. It’s about time you future generations paid your own way.

When I bought my first home in 1982, it came with a 12% mortgage rate and required a 20% down payment. That was the normal for the times. I felt lucky at the time as a year later they were approaching 18%.

I know the Democrats generally want to give away as much money as they can; they think that is what keeps them in office. But, I kinda think that is the reason for the stock market panic right now. It started in 2008. At that time savings interest rates were around 5 – 8%. They started reducing interest rates to try to revive the economy. The problem is that they have since taken it to basically zero and still the problems persisted.

It’s easy for government to reduce interest rates, but infinitely difficult to raise them. That is the fundamental problem for those senior citizens like me who are risk averse when it comes to the money I spent a lifetime saving. The whims of the stock market just don’t make much sense to me, so I avoid putting my hard-earned saving there. With interest rates near zero for so long there was simply no place to get even a little back for letting others use my funds.

Interest rates are creeping up now and may eventually get to a level that equalizes the benefits of both the people providing the money and those borrowing it.

4 thoughts on “PANIC!! – The Interest Rates Are Above 3%!!

  1. I’ve often noted that when I was young and had no money, savings rates were 20% and now that I’m older and have a nest egg, interest rates are at 0% (until recently). Seems backwards to me.


  2. Only 12%? When bought our previous home in the mid 1980s, our variable rate mortgage started off at around 12% but then rapidly increased until it reached an eye watering 25%, reducible to 23% if the monthly payments were made before the due date. If it wasn’t for the fact the both the wife and I were in full time employment (her as a high school teacher and I as a Computer engineer), we probably would not have been able to meet the payments. And now when we expected our savings to supplement our superannuation, the interest it earns is but a mere pittance.


    1. It sounds like NZ was pretty much the same at the U.S. during those times.
      I must admit that I have never heard the word superannuation, before. Thanks for adding it to my vocabulary.


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