Boon For Wall Street,
Goose Egg for Savers

Want to place a bet on how long the Federal Reserve’s current policy of zero percent interest rates (“ZIRP”) continues?

Consider who it helps — and hurts:

ZIRP Winners:

–U.S. Treasury (debt service kept artificially low)
— Wall Street (free money — how nice!)
–Mega-Corp Borrowers (ditto. IBM just borrowed more than $1 billion for . . . 1%!!)
–Home owners (*kind of)

ZIRP Losers:

–Retirees and other savers

My money’s on zero percent interest rates . . .

*Historically, cheap mortgages stimulate housing demand. But cheap money can be trumped by other factors, like falling asset prices, high unemployment, etc.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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