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Low interest rates: End of the beginning or beginning of the end?



January 27, 2012 – Comments (4) | RELATED TICKERS: BRK-B , TLT , JPM

4 Comments – Post Your Own

#1) On January 27, 2012 at 5:13 PM, truthisntstupid (80.57) wrote:

Hi, TMFMarathonman/BullN'Bear/Aleph1

So what's your interpretation of the graph? I know what mine is. Low interest rates sent millions of seniors back to work that thought they had done everything right. I remember when this low interest rate crap began.

Jerry Brown was campaigning for President, and was cornered while campaigning by a bunch of angry voters who were watching the IRA's they had spent a lifetime building get obliterated. They wanted answers...

It wasn't as easy to invest in the market back then...most people had an IRA through their bank and spent their life building what they thought was a safe, secure retirement.

Low rates were supposed to be good for "the economy" and "business."

Gee. I wonder why our savings rate as a nation went to crap?

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#2) On January 28, 2012 at 3:10 PM, Frankydontfailme (29.46) wrote:

heh. And you're the one that thinks gold is in a bubble? Id' recommend checking out DTAF's blog about short term interest rates and gold price correlation.

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#3) On January 28, 2012 at 3:17 PM, truthisntstupid (80.57) wrote:


Maybe gold is in a bubble, and maybe not. It's more that it won't affect anything I do one way or another. 

I'm a hardcore believer in dividend investing, and I believe that's what's best for me.

But I think you were talking to marathonman/bullnbear/aleph1.

I love to read dumberthanafool's comments. I usually learn something.

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#4) On January 29, 2012 at 7:13 PM, TMFAleph1 (92.60) wrote:


I've seen DTAF's blog concerning the model linking gold prices with real short-term interest rates; I think that model is absolutely valid. In fact, I think low/ negative short-term rates are a condition of a gold bubble.

There is no question that the Fed's recent annoucement that it expects to keep rates at zero through 2014 is positive for gold speculators. However, it only means that the ultimate reckoning is pushed back some, not that gold will continue rising eternally. 


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