Savers are screwed yet again


With Ben Bernanke slashing interest rates in an effort to kick-start a slowing economy/housing market, it's worth looking at the victims of this policy -- even as the stock market cheers each rate cut.

The people who are getting screwed royally here are the retirees living off of fixed-income investments: it's a lot harder to get by when CDs are paying 2% than when they're paying 4%+, as they were not so long ago.

Let me sum it up this way: these interest rates cuts are helping out people who racked up debt and slashing the living standards of people who saved responsibly for years and counted on their savings to provide for them in retirement. That's wrong.

Financial guru Jim Rogers recently told Bloomberg that "Bernanke loves printing money. This man is a nut. The dollar is collapsing, commodities are going through the roof, which means inflation's going through the roof. These people are leading us to terrible problems down the line.''

Retirees on fixed incomes would probably be inclined to agree. The moral of the story here is that if you rack up credit card debt and buy a house you can't afford, the Fed will help you. If you save dutifully like your parents taught you too, you're on your own.