Bernanke Tells Retirees and Savers “To Take One For The Team” – Interest Rates To Remain At Zero

Federal Reserve Chairman Ben Bernanke presented to Congress today the semiannual Monetary Policy Report which discusses current economic conditions, monetary policy and thoughts on fiscal policy. Mr. Bernanke vigorously defended the Federal Reserve’s zero interest rate policy stating that the benefits of  an easy money policy outweigh the “potential costs of the increased risk-taking in […]

Negative Real Interest Rates – The Invisible $290 Billion Tax On Savers

Whatever happened to the concept of earning interest on savings?  Since the start of the financial crisis in 2008, the Federal Reserve has aggressively suppressed interest rates to near zero. The Fed’s rationale for lowering interest rates was to get the economy back on track by lowering borrowing costs for both consumers and businesses.  Lower […]

Banks Were The Worst Place To Keep Your Savings This Year

Federal Reserve Chairman Ben Bernanke warned us repeatedly that he would repress interest rates indefinitely in order to help the economy and the housing market.  Interest rates on government treasury securities have reached all time lows and bank depositors are receiving close to a zero return on their savings.  Meanwhile, both housing and the economy […]

Banking Update – Daily Banking News

Welcome to Banking Update, a roundup of articles and news from around the Internet.  The Fed’s low interest rate policy has killed savers but is it also killing the economy?  Also, the U.S. is heading for another credit downgrade, what capital levels do banks real need and housing prices drop again.  On to the links. […]