Tuesday, April 13, 2010

Thank you, Alan Greenspan

This ad for a 5 year 0.80% "High" Yield CD popped up when I logged into my Bank of America account recently. At this incredibly generous yield (applying the rule of 72) it'll take me a mere 90 years to double my money in nominal terms. Alas, by then I would have lost 99% of the purchasing power of this amount to inflation, and I would also have to pay taxes on the income.

Hmmm is it really any surprise that the equity and fixed income markets, as overvalued as they are, are showing such strength?

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