The banks with the subprime crisis and the housing slow down the Feds forced to cut benchmark interestrates from 5.25% to 2% in just over a year. 50 basis points on September 7, 25 in October, 25 in December, 75 January 8th, 50 points back in January, March 25 and 75 points back in April. Most of this benefits the banks, brokers and speculators who have profited immensely from the growth in subprime mortgages. You are impacted by this in three ways.
1. Every dollar the Feds create newresults in a decrease in purchasing power, lowering its standard of living and threatens retirement. Money is like any other commodity. The greater supply of dollars, not worth it. The value of the dollar is falling at an alarming rate.
2. This brings us to the next impact. Commodity prices rise. The purchasing power of the dollar goes down. To balance, the prices of commodities rise. I believe that rising oil prices is not relapse to the oil crisis, but it is a currency crisis createdto cut the federal interest.
3. Subsequently, the yields obtained becomes smaller. Tariffs, or savings accounts, CDs, short-term bonds to reduce all. How do you protect yourself from this? 1. Put your money to invest and reduce consumption.Credit invite cards to spend on consumer goods. Do not yield to temptation.2. Investing in high dividend paying stocks following this blog.Dividend paying stocks is the biggest secret of wealth in the long termbuilding. You can build your fortune with shares of large cap companies.
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