Why Save?

In today's economic environment there is very little reason to save. If you do you get the proverbial shaft, while the government keeps the gold from the mine. 

There have been many examples of this. The first that comes to mind is the shafting the GM and Chrysler bondholders got in their bankruptcies. Secured lenders got less than unsecured lenders. One Chrysler bondholder that said he was going to sue was threatened by the government and he did not sue.  I doubt that the government was responsible for the death threats that the investor recieved. Property rights mean nothing anymore. 

The rate of interest that a saver recieves right now is less than the inflation rate. Of course, they also pay taxes on this "interest." This is a direct consequence of the actions of the Federal Reserve. 

The Obama regime will continue this in its latest plan to "help" homeowners who owe more on thier house than it is worth. From the Wall Street Journal:

The latest iteration came Monday, when the Federal Housing Finance Agency unveiled changes to a program meant to make it easier for underwater homeowners who are current on payments to refinance into a lower-rate mortgage. 

On the surface this does not sound bad, but it is another example of savers getting the short end of the stick:

Missing from that winners' list: investors who finance housing markets by purchasing mortgage-backed bonds. They will fund this new effort. Here is how: As homeowners refinance, investors who bought mortgage bonds will be given back their money and will have little option but to reinvest at far lower yields. The transfer is the difference in yield.

It is not that the bondholder is paid off, as in a normal refinancing, the bondholder instead just gets a lower rate of return than promised-without thier permission. 

Why save? Why invest? The Banksters are just going to take it from you. 

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[Eddie H. Nessul]

JESUS SAVES!

Eddie H. Nessul
Amboy, CA

(Read Names Backwards!)