The best laid plans of mice and men or so the saying goes, sometimes run amok. This bailout we keep reading about? Bailing out companies who thought long term debt would be okay and who paid their CEO's millions even while floundering in 2008. Bailing out homeowners who had no business buying a home in the first place.
For those make it a habit to put aside money regularly the economic turmoil means one thing: Interest rates on the money in our money market and savings accounts are like 2 or 3 percent.
100k in the bank will yield about 30 bucks a month if you're lucky. Trying borrowing 100k and see what the interest rates on that loan bring you: Like 8 - 12 percent depending on what's been borrowed on.
So basically, for those of us who thought ahead, who scrimped, saved and lived within our means are being punished by those who did none of those things except suck the system dry.
It feels that I have attached a long string to a tree trunk and that I'm trying to fly it like a kite:
I'm getting nowhere.
Can this country just hit bottom and get it over with? The sooner this happens the faster we'll all be on the road to recovery.
3 comments:
Dad, you're using public school math! 100k in the bank yields more than $250 a month at 3% interest. But still, it's crap.
Well, whatever the percentage is the yield gained each month is as written here. Yes, it's still crap.
Bob,
What can I say? If nothing else, it is helping me teach my kids the value of credit cards and high debt. They are watching their father get debt free and I don't think they like what they are seeing.
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