Simple economics. . .

If your interest rate on your savings account, CD, or bond is lower than that of inflation, you're losing money.

Plain and simple. . .

I just don't get how so few people understand that.

What's your take on it?

 

I value my Cd's on the quality of the music on them, in that respect my musical perception is steadily inflating.

 

I remember the day I had a savings account...

 

But the bank is losing money as well no?

 

No.

For every dollar you have in savings they're permitted to loan out $10. In some cases, up to $20.

Savings accounts, in Indiana, are paying less than 1% interest. So for every dollar you gain less than 1% on, they've got $10 loaned out at probably 5-15% interest.

They're coming out ahead in the equation.

McCleod, you know what I meant.

 

I thought you were smart for a moment there. Banks have been exploiting low income earners for several years and its no big mystery and there is very little we can do about it other than put aside $10,000 and put it into an account that pays off a decent rate.

 

Yes you have that right.

Fortunately there are banks in other countries, specifically in the Caribbean and South America/Central America that pay considerably higher interest rates and are more stable than a good amount of U.S. banks.

Also buy something at five dollars and sell it for 15 dollars and you have a nice return on investment.

Although I will not sell a product unless I can mark it up at least 5 times or more from my buying price

 

I don't understand simple economics. Never have. I was sleeping when they taught me the basics.

But I don't really care either. I seem to make enough and I know how to work.

 

Putting $10,000 in savings is almost foolish. A CD is a little better but it ties your money up for the specified time and unless you have $10,000+ you're still probably raking in less interest than the inflation level.

 

Not to mention with the lovely world of outsourcing you don't waste life's most precious asset.....time. Just watch the money coming in and make sure it adds up right. At least, that's how I think it should work. haha

 

Somehow I have a hard time believing that.

 

Guilty.

I just like to pretend I know how to work.

Don't you have a vested interest in people having mediocre understanding of how money works?

 

show me anything at all math related, and i'll show you how well my eyes can glaze over and how much drool i can make. i am hopeless.

 

The only math I don't die to is that 99 upside down sex thing.

 

ahhh, the calculator porn.

 

Calculator porn? 58008.

I meant the sex thing.

 

yeah, calculator porn was our code word for it. everyone thought we were talking about spelling out boobless and such on our calculators. what?! we were little.

 

ah, cheeky bastards!

 

Somewhat.... yes. I can't deny that I find myself in a position to make good sums on the financial fears and follies of others.

At the same time I have a love for the wellbeing of people. I may be a dick, but I don't like seeing people down and out, ya know? At the same time I can't walk away from money just because it's a zero sum game.

 

I guess I share the sentiment. I always carry a fiver around to give to the bums around town. Especially the ones that are obviously going to spend it on beer. Cause I know the feeling.

But whats all this about money being zero sum?