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The Prudent Lose Another Round
Old 10-29-2008, 06:18 PM   #1
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The Prudent Lose Another Round

The Fed once again kicks Grandpa & Grandma in the soft parts, but can only drop one more percent before they reach zero.

Is ANYONE here a saver beside moi? Are ALL of you [moderator edit] in equities?

Well,...no matter. Either way we're all going down together(except for you bankers of course).


Seriously though, does anyone here invest in CDs/money markets/plain old interest payin' bank accounts or is everyone else a high-roller.

There never seems to be much displeasure with declining rates in this joint.

Maybe ER folk are debtors rather than creditors.
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Old 10-29-2008, 06:41 PM   #2
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That's the problem. The cost of capital has been for the last decade or so less than the inflation rate. If you are a saver ythen you are a loser.

Knowing that, many people recently bought up (then) appreciating assets. They bid up asset prices to ridiculous levels and then the bubble burst. There are losers all around. many just don't know it yet. You can thank Alan Greenspan for your plight.

I do have some equities but I aquired them over the decades so comparing what they are worth now to what I paid makes the recent pain more bearable.

I have now concluded though that you should invest in fine wine. You will really enjoy your money much more that way - as you convert your assets. And it's a very "liquid" asset.
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Old 10-29-2008, 07:18 PM   #3
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Is ANYONE here a saver beside moi? Are ALL of you [moderator edit] in equities?
I'll make you a deal: Give me a generous pension and promise me SS will be there to give me what they claim I'll get, and I'll cut back on my equity allocation.

Until then, it's my only chance to be able to retire.
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Old 10-29-2008, 07:21 PM   #4
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Barbarus, I think we can all do without being sworn at.

It is disconcerting to see everyone being bailed out except those who have been prudent. But perhaps it's in everyone's interest, long term. That's the given idea, anyway.
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Old 10-29-2008, 07:22 PM   #5
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I see the moderator has acted. Thank you.
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The Prudent Lose Another Round
Old 10-29-2008, 07:24 PM   #6
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The Prudent Lose Another Round

barbarus...sorry but you, like me, are an idiot.

Rule #1: You are an idiot if not in the equities market (INFLATION Insurance in equities only)
Rule #2: You are an idiot if you are 100% in fixed interest account (INFLATION will devour you!)
Rule #3: You are an idiot if you're 100% in fixed accounts...you will never have the chance to come from behind just to recover your original paper gain).
Rule #4: You are not a risk taker and therefore of lower IQ.
Rule #5: You love a restful night's sleep and 18 holes of golf a day
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Cash Is King?
Old 10-29-2008, 07:24 PM   #7
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Cash Is King?

Actually, I noted on another thread some time ago what Bill Gross was saying on his PIMCO site. "We are having our pockets picked."

He was referring to the rather odd state of cash being highly desired yet only from billionaires like Warren who is getting a 10% protected return for his cash.

If you have a mere million or two in cash you can't get a good rate even though "cash is king".

Some one has to pay for the mistakes of high flying equity investors and it might as well be you.

b.
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Old 10-29-2008, 07:26 PM   #8
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I've been watching interest rates at my credit union and so far they have been holding the line on CD interest. The current rate for $5k min, 61 month is 5.30 APY. Their rates have been holding steady for the last 3 months.

I've got a CD that matures the end of November so I imagine they will drop the rates soon.

I did find out my CU will bump a CD to a higher rate without penalty if you keep the same or longer terms and don't withdraw any cash when you switch.

By the way, I'm all CD's. I'm playing the game a little different than most because I have a non cola pension that pays nicely and the stash is going to be used to offset inflation losses. Right now we are living on my pension and DW's ss. I'm letting my ss grow for a few more years before I take it. The stash is growing nicely even in the current situation.
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Old 10-29-2008, 07:31 PM   #9
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I have some in MM, some in bond funds, some in equities, some in RE. Does that answer your question?
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Old 10-29-2008, 07:44 PM   #10
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I forgot Rule #6: It's not good for the economy if you're not in the equities market.
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Old 10-29-2008, 07:46 PM   #11
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Is ANYONE here a saver beside moi? Are ALL of you [moderator edit] in equities?

Maybe ER folk are debtors rather than creditors.
Ummm, so if I take my savings and buy equities then I'm no longer a saver, but a debtor instead?
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Old 10-29-2008, 08:07 PM   #12
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I have only this to say: Diversification

DD
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Old 10-30-2008, 05:46 AM   #13
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As you can probably guess from my screen name, I'm in your club. While it has been pretty lonely over the last 8 years or so, it seems to be have been more comfortable than watching my investments cut by 40% from their high. So I feel pretty smart recently, in comparison to how I felt most of the past 8 years, but the outlook for my current style of investing looks bleak (as does the economy).
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