Simple economics. . .

Name a savings account that is higher than 4%. That's why.

 

That's the point. WHY do people continue to allow it by putting money in? If people stopped depositing money they would be forced to adjust accordingly.

 

i think most people anymore just use their savings account as a checking account overdraft account.

 

Not all money in general, but many of the games that involve money are zero sum.

On an outside example(because it's simple and I don't want to think too much)

If I bet you $20 on Monday's football game and you win, I give you $20. Sure, you're $20 wealthier, but no new wealth was created. My wealth transferred to you. Much the same with the stock market and other means of income. Much of it is just moving numbers from one side of the equation to the other.

 

i guess it's better to make interest at less than inflation than it is to not make any interest at all...

 

apples and oranges.

transfers of money are only transfers of money.

creation of wealth is creation of wealth.

 

With a little imagination and some reading, tenfold returns are easily possible. And depending on how good the imagination is infinite returns can be achieved(meaning making money on your ideas without needing any money to start).

 

you wont have to worry about folks putting money in much longer.. the bank runs are just around the corner..

they are already starting on wall street,as soon as the average american figures out our entire banking system is insolvent,,the rush will be on..

 

I have always done much better trading stuff than selling and paying cash for other stuff.

Hell with cash!

 

Perhaps I've failed to explain my initial comment.

You said I have a vested interest in the lack of financial education of others. That means I stand to realize gains based on their losses.

Is gambling not the same? Somebody realizing a gain based on the loss of another?

Both scenarios are zero-sum situations because it's a transfer of wealth.

Now buying property and watching it appreciate is not zero sum because the gain I realize isn't at the expense of another so wealth is being created.

You pickin' up what I'm puttin' down?

 

yeah. I am.

but I don't think duping the duped is necessarily a transfer. A clear and precise idea of exactly what is required for the creation of wealth might help show why. I say might because I'm not sure if it would.

 

You mean, like invest or use cash instead of going to the banks?

 

I think your right.

Inflation typically increases 3% per year, so most people just barely keep up with inflation.

That is why you should invest in stocks though, which average 10% per annum and can compound into huge sums of money over time, especially if your young (like me)

Although it's good to have liquid assets and emergency money in money markets and savings accounts. Just not all of your savings.

Most financial advisors recommend 6 months worth of living expenses be saved in a liquid savings account like a money market fund, which imo is better than a CD.

Yeah inflation sucks but so does not having any money, and so does selling stocks for a loss in the short term if an emergency comes up. And borrowing or withdrawing from retirement accounts prematurely is a huge mistake that will cost you BIG time in penalties.

Anything beyond that 6 month emergency fund goes into the stock market through a roth IRA or 401k, preferably into index funds and not mutual funds. Or buying a home.

I am the new Suze Orman of the hip forums

 

In good times Bank of America had CDs that offered 5% with a $5,000 minimum. I imagine that will come back when the economy improves. Now it's down to like 2-3%...

Charles Schwab offers a checking account that offers 3% interest at www.schwab.com - it is free and they redeem all ATM fees too. If you do the math, that can add up to a few hundred dollars a year easily in interest depending on how much money flows through your checking account.

It was voted the best checking account by Money magazine earlier this year...I have had my account there for a while, they used to have 4% interest on it and I imagine that will come back too eventually.

 

let the stupid do their bank runs
only going to hurt themselves

 

it will hurt all of us because it will crash our economy completely..

oh wait,you live at home with mom and dad and dont have to work for a living.. it wont affect you at all,so i can see why you could care less..

 

you keep bringing up the fact i live at home like its a bad thing. like i don't have collections agency calling to collect money for my student loans - yea, my loans my parents aren't paying for. like i'm not going to be penalized for not having health insurance after this month.

yes, short term the economy fucking blows. long term, i'm much more optimistic

 

"The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered."

Thomas Jefferson

 

a bank run has short term implications of disaster.. you poo poo it like it wont affect you. its obvious you feel insulated from it because you live at home with mom and dad and are insulated from its impact.
theres a HUGE difference between a student loan and a mortgage,as there is you losing your personal health insurance as opposed to losing it for ones whole family..
like i said,your the one constantly touting how nothing is going to affect you.
i just understand why you take that attitude..
your not yet fully on your own and most of what others have to worry about with the economic situation in the short term your not affected by because you are single and live at home with mom and dad.

 

yea, and how many people are actually going on bank runs...you know, right now?

if many people go on bank runs, then i'll be worried. the stupid people going on them now, deserve the major losses they get. but until i see people actually panicking and going on bank runs, then no, i'm not concerned about being effected by people goign on bank runs