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<blockquote data-quote="rickyb" data-source="post: 3667158" data-attributes="member: 56035">And in fact the Japanese, early in their crisis, they said the biggest mistake we made was not writing down the bad loans in the banking system. Don’t repeat our mistake.And we did this in a more indirect manner by having the Fed engineer these super-low interest rates that were a transfer from savers to the financial system. Economist Ed Kane said that basically savers lost $300 billion in income a year. So that reduction of income right there, you see today. There’s a Wall Street Journal story about how pension funds are in crisis. There’s not a single mention of the fact that the zero-interest-rate policies are the reason why the pensions are in distress. All retirees and long-term savers, life insurance, they’re all in the same boat. It used to be that if you were a saver or an asset holder, you could get a decent positive return doing something not crazy. And the Fed took that away. The big reason the pensions are in crisis is because the way we dealt with the crisis.</blockquote>

[QUOTE="rickyb, post: 3667158, member: 56035"] And in fact the Japanese, early in their crisis, they said the biggest mistake we made was not writing down the bad loans in the banking system. Don’t repeat our mistake. And we did this in a more indirect manner by having the Fed engineer these super-low interest rates that were a transfer from savers to the financial system. [B]Economist Ed Kane said that basically savers lost $300 billion in income a year. So that reduction of income right there, you see today.[/B] There’s a [I]Wall Street Journal[/I] story about how pension funds are in crisis. There’s not a single mention of the fact that the zero-interest-rate policies are the reason why the pensions are in distress. All retirees and long-term savers, life insurance, they’re all in the same boat. It used to be that if you were a saver or an asset holder, you could get a decent positive return doing something not crazy. And the Fed took that away. The big reason the pensions are in crisis is because the way we dealt with the crisis. [/QUOTE]

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