Monday, April 27, 2009

Savers are still paying for Fed’s gift to banks

An excellent article about how Savers are subsidizing the bailout. Think a 60% drop in the stock market is bad (update: its now "only" down about 40%), imagine getting 6% on a Certificate of Deposit five years ago and renewing it at 1.5%. That is a 75% drop in income. On $1 million you would go from an income of $60,000 to an income of $15,000....this is the hidden tax of the bailout.

Scott Dauenhauer CFP, MSFP, AIF