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CD rates a cause for protest

By Sheyna Steiner · Bankrate.com
Wednesday, October 12, 2011
Posted: 11 am ET

So CD buyers may not actually be taking to the streets to protest low CD rates, but today's ultra-low yields are a product of the same series of debacles that have spawned the Occupy Wall Street protests, which began last month in New York.

There were a confluence of factors that contributed to the financial crisis. The Financial Crisis Inquiry Commission, created by a law signed by President Obama, found that at the heart of crisis was human greed and failure, not an inevitable contraction as part of the business cycle. The federal government bailed out the very entities that played huge parts in the near collapse of the financial system; a quagmire that would cause $11 trillion of household wealth to evaporate, millions of jobs to be lost and business failures around the country.

For that, taxpayers have, in many instances, been illegally forced out of their homes; small businesses can't find loans and millions of savers are being denied interest income.

People who followed the rules got hurt -- and continue to be hurt -- by the actions of people far removed from their circumstances. In and of themselves, CD rates may not be worth protesting but they're part of the larger picture that may very well be worth taking to the streets.

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8 Comments
Sheyna Steiner
November 03, 2011 at 7:47 am

Thanks for commenting Jim. Seniors have been hit hard by the low CD rates and will continue to be unfortunately. Everyone should always shop around for the best rates available but I don't think banks can take the lump for the low rates -- just like everyone else, they're stuck with the rates the Federal Reserve sets.

Jim
November 02, 2011 at 7:42 pm

What we need to do is to let the banks know just how much the Seniors have invested in low paying CD's. Move the money out of the banks. Similar to the debit cards fees. Remember everyone "money talks"!

NO stocks 4 me
October 15, 2011 at 2:28 pm

With costs going up, COLA kept at a minimum per the BLS, rates kept down per Bernakapart, savers are either forced to dig into their savings to keep up or go out too far for what its worth interest wise, esp if they find that their SS isn't keeping up and they need to get their hands on their money they locked up for 5 to 10 years @ 2%. or get talked into some markeeet scheme by some "investment" adviser that of course has only their interests at heart, smirks, while looking to soak them even more per the fee's or commissions.

Yesterday is a memory. Tomorrow is a hope. There is no escape and there is no way out. So I will continue as I have until I can’t. The sun is shining, the birds are singing, today is good . I will change the things I can . Accept the things I can’t and hope to have the wisdom to know the difference. After all, on a long enough time line we are all dead.

My goal has been and atthis point still is, to maintain my principal as long as possible and as safe as possible. Yes at these rates its not keeping up with real inflation, but than I don't need or buy a lot of garbage either. I don't even use a cell phone, and you won't find me standing in line for a 600 buck a pop Iphone, smirks.......

end the fed
October 15, 2011 at 1:10 am

The protests should be in Washington. How many of the problems that caused the 2008 financial crisis and the stagnation afterwards can be contributed to the easy money policy of the Federal Reserve and corruption of Treasury Secretarys Hank Paulson (formerly with Goldman Sachs) and Tim Geither (tax cheat and bailout advocate)

Sheyna
October 13, 2011 at 8:13 am

I think the perception is that the government is pretty firmly in the pocket of Wall Street and other big industries. I don't really see anything objectionable myself about occupying Wall Street rather than Pennsylvania Ave. but certainly it doesn't help the counter-narrative that protesters are only interested in bringing down capitalism.

Further Ash your problems seem to mainly lie with the Federal Reserve and I don't think the Fed can be disentangled from the financial sector. And that's not even getting into the whole controversy surrounding the Federal Reserve.

Ash
October 12, 2011 at 6:36 pm

Protest the government's monetary policies, not 'Wall Street'. Individual savings are at a generational high, corporations are sitting on piles of cash, and yet the Federal Reserve continues to print money and practically give it to the banks. Ben Bernanke says he's ready to provide further stimulus. Where can you go from zero? What the heck are you going to do, Ben, start paying the banks to take your money? When the government stops the printing press, and stops slopping the banking hogs with free cash, they will have to borrow money from you and me -- then interest rates will go up, the average person can make a buck, and the economy will take off. And don't start in with "people won't be able to afford homes with higher interest rates". I've got news for you, they can't afford the homes anyway.

Sheyna Steiner
October 12, 2011 at 2:11 pm

It's truly disturbing and wrong on every level.

The OWS protests have been criticized for lacking an articulate set of goals but, darn, there is just so much wrong.

Thanks for commenting!

Wolverine
October 12, 2011 at 1:45 pm

A symptom of a bigger disease... the US Government.

Isn't it wonderful? When corrupt corporations only get a slap on the wrist, and yet, the American people are the ones that have to suffer through it. But still, there are no shortages of lobster/steak dinners for politicians, while unemployment still soars over 9% and CD rates are almost at negative percent.

Something wrong with this picture?

You betcha, bub.