Financial innovation can rescue savers

Not getting the interest on savings you’d like from your bank? Then it’s time to cut out the middleman, says David C Stevenson.

Financial repression sucks for savers. Near-zero interest rates are a conscious effort by central bankers to force savers to become investors (to take more risk) and to effect an inter-generational wealth transfer (most young people can’t really afford to save – but they do need to borrow).

Just consider a comment allegedly made by ex-Federal Reserve chief Ben Bernanke to hedge fund supremo David Einhorn. Bernanke supposedly said: “if you raise interest rates for savers, somebody has [...]

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