Money market interest rates are very low right now just like they are for CD’s and savings account interest rates. Anyone trying to find a decent interest income for their portfolio will be extremely disappointed as it is next to impossible to make money from interest without taking some risks. If you want to profit from your money to any meaningful extent, you are probably going to have to buy stocks or bonds and take on that risk. Investing in government backed CD’s or Treasury bills is just not going to pay you enough to make it worth your while.

High yield doesn’t mean what it used to as right now, and anything that is classified as high yield is what they used to call “low yield”. No one is making much money at this time through their “safe” investments whether those investments are in money markets, CD’s, Treasury bills or any other type of government investment vehicle. It is a waiting game right now and you just have to tighten your belt and ride this awful economy out. There will be better times ahead and we just have to get through this to get to them.

In the media, no one seems to mention that low interest rates hurt retirees and older people the most. Senior citizens should have a lot of their money in cash, which means it should be in government bonds and bank CD’s earning interest. As it stands right now though, that money is earning very little which will affect all older people.

Since so many seniors depend on interest income as a significant part of their earnings, rates being so low means that they are in big trouble. We will all become senior’s someday in the future and it’s one thing we should all be concerned about. More attention should be paid to the plight of the older people in our country as they are suffering through this economic downturn just like younger people are.

Low interest rates are really just another form of income redistribution when you think about it. They don’t hurt people who have little money and in fact help those who want to borrow because they have nothing. Those who do have money and used to make decent interest income, now make very little. Democrats always talk about income redistribution and helping the little guy and this is one way they do it under the radar.

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