Although not a bull, the bison is in full regalia with party hat, balloons and cake with lighted candles complimenting the festive atmosphere. And why not !!!
Last week the Federal Reserve (all non-elected officials, btw) gave the green light to literally zero-bound interest rates until 2024, another gut punch to retirees and prudent investors. On the flip side, it’s great news if you are a debtor, financing a mortgage, car, education, etc., since low interest keep the costs of servicing that debt low, which is a good thing. Just need income to service that debt and your good.
Oops.
A simple fact taught in the required personal finance course we all took in High School or College is ‘Debt is Wealth’s Destroyer’. Apparently this axiom is ignored because the lessons of 2008/2009 were discarded as Americans piled up $ 4.2 trillion in consumer debt, plus an additional $ 10 trillion in mortgage debt, just as Covid-19 came ashore. The US Government added trillions of debt during the 6-month and counting, evolving pandemic, but the stone cold fact is they don’t have to pay the debt back, YOU do. Another axiom, “Cash is King” is boring and pays little, but provides what my favorite band, Boston, espouses in it’s debut album, “Peace of Mind’.
