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I understand that the inflation does not keep up with the savings rate of a savings account.  Therefore savings accounts are bad.

Your advice not to listen to any financial adivsor is sound.  I can understand Goethe and Schiller and poetry.  But when it comes to bureauratic and legal German, it's all Greek to me.  It is hard to understand.

So I am like a child, I am like a pensioner with money to take - a fool with their money is soon parted!

I just do not wish to be a fool

"Schiller sprach zu Goethe, Steck in dem Arsch die Flöte! Goethe sagte zu Schiller, Mein Arsch ist kein Triller!"

by Jeffersonian Democrat (rzg6f@virginia.edu) on Wed Mar 24th, 2010 at 09:40:50 AM EST
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I understand that the inflation does not keep up with the savings rate of a savings account.  Therefore savings accounts are bad.

It is possible that this is not the case right now. Banks are still starved of cash, if you can believe it, to beef up their "core capital". So it is possible that certain deposit or money market accounts (even some checking accounts) pay high interest rates. In addition, right now we're experiencing deflation.

I am like a child, I am like a pensioner with money to take

Widows and orphans have no place in the financial casino. So we regulate mutual funds in order to make them "safe" for widows and orphans. But in making them "safe" we make them slow and vulnerable to nimbler market players so they are just like the proverbial widows and orphans. So the widows and orphans lose their money in the casino anyway. So, the moral of the story is: if you're not safe by yourself in the casino, don't give your money to someone else to play in the casino for you.

The brainless should not be in banking -- Willem Buiter

by Migeru (migeru at eurotrib dot com) on Wed Mar 24th, 2010 at 09:49:24 AM EST
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