QE3 and the Baby Boomers

At the beginning of yesterday’s QE3 press conference, Fed Chairman Ben Bernanke referred to the plight of savers. Similarly, during an August “Conversation With the Chairman,” Dr. Bernanke was asked, “What about the savers?” Both times, Dr. Bernanke had the…

Size Inflation

Inflation is not only at the cash register. Our story starts at H&M where an Esquire journalist tried on a size 36 pants that were too tight. He continued his search for pants with the 36″ waist label at Old…

Savers or Borrowers?

In 1987, a $100 savings account would have earned close to $9 in interest. In 2005, $3.75 or so. Now, maybe 47 cents? The WSJ, had a good article describing how savers are suffering. The retirees who expected to depend…

The Two Sides of ZIRP

Hearing economists discuss the Fed’s zero-interest-rate policy, Harry Truman would again search for a one-handed economist. On the one hand…if you can borrow money cheaply, you are more likely to expand your business and buy a house or a car.…