[ExI] bitcoin and ransom: where does one find pitchforks?

[BillK]

On 21 February 2016 at 19:28, spike  wrote:
> This has occurred to many of us.  No one foresaw interest rates would drop
> to practically nothing and stay there, de-incentivizing the masses from
> having savings accounts.
<big snip>


I know that this is the popular understanding, but I'm having some doubts.
The masses don't have much savings because wages are too low in the
jobs that are available.

Another point is that the large baby boomer generation are reaching
retirement age. Those with little retirement savings are forced to
keep working. But those living off the interest of their savings face
a reduced income. I think this leads to a counter-intuitive result. If
your savings were producing 3% interest income and the interest rate
drops to 1% your income is reduced by two-thirds. This means that you
have to treble your savings to regain your original income. Not easy,
of course! But I think that (some at least) pensioners are desperately
increasing their savings to try and regain income. So there is some
incentive to actually *increase* their savings.

Total Savings Deposits at all Depository Institutions
<https://research.stlouisfed.org/fred2/series/WSAVNS>


BillK