When savings turn to debt July 5
Tiny interest rate bad for retirees
Examining a retirement nest egg for a baby boomer is disheartening. Ten years ago, one could find safe and secure CDs with interest rates between 5 and 7 percent. That was enough of an increase to keep us coping with inflation and spending.
With the Fed keeping interests rates at near zero to stimulate the economy (translation: encourage borrowing), retirees are left with money in the bank that earns near zero interest. So the banks make money, and we do not.
We were brought up to view the stock market as a place to put funds you could afford to lose. Gambling with our funds in our 60s and 70s and older years is hardly wise. There should be a decent interest rate available to older folks, without gambling in the stock market.
I guess we will just watch the purchasing power of our savings dwindle, and then one day the government will have to take care of us!
Not exactly what we want.
Susan Anderson, Holiday
HomePath's road to deals July 6
More rentals lead to lower values
Foreclosed homes are the business of cleaning up the mess the federal government tried to pursue to give everyone a shot at homeownership. The results are the federal HomePath program trying to discount the value of homes to the point they devalue the other homes of the neighboring homeowners.
The bottom line of devaluation is the explosion of rentals, which also add to depressing area home values. Renter homes are never improved by "slum lord owners," and the renters make no effort at appearance or improvements, either. No government agency wants to become the enforcer of community standards related to homeowners, and we all see our home investments lessen.
Allen G. Smith, Dunedin