Savers Left to Foot the Bill for the Financial Crisis
March 1, 2013
Special
Economic Analysis
by Peter Warburton, director, Economic Perspectives, Ltd. In America and Europe, there is a silent transfer of wealth taking place, day by day. Cash-strapped and heavily indebted governments are desperate to hold down the interest rate at which they borrow. Unfortunately, this also means perennially low interest rates for savers: rates so low that they do not match the rate of inflation. Negative real interest rates imply that retirees must consume their wealth in order to pay the bills.
The heads of some of the biggest US banks gather
for a press conference outside the White House
after a 2009 meeting with President Barack
Obama. John Stumpf, center, CEO of Wells Fargo,
is at the microphone. (Mark Wilson/Getty Images)
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