Finance: (U.S.) Savings Bonds Get Sticky (Reuters)

[Up2Late]

("Maybe they are trying to gut this program" - Jack Quinn, of http ://savingsbonds .com):(

Finance: Savings Bonds Get Sticky

Sat Apr 9, 2005 06:30 PM ET

By Linda Stern

WASHINGTON (Reuters) - Series EE savings bonds are changing, and not for the better. Savers who regularly buy the old-fashioned bonds have less than a month to rethink their strategy.

Starting May 1, the Treasury will stop issuing Series EE bonds with floating interest rates. The bonds you buy after that will have fixed interest rates for at least 20 years. The Treasury is guaranteeing rates of at least 3.6 percent for folks who hold the bonds for at least 20 years -- but that's kind of underwhelming.

Coming at a time when interest rates are near historic lows, this is not a development likely to help savers. It's more likely to doom Mom, Pop, and the typical newborn or bar mitzvah boy recipient to years of sub-market returns.

If, as analysts expect, interest rates continue to move up for months or years, this could make Series EE bonds so unattractive as to spell disaster for the program, suggested Jack Quinn, of <http://savingsbonds.com>, a non-government affiliated Web site that analyzes savings bonds. "Maybe they are trying to gut this program," he said.

(more at link above)

[whistle]

1. BushCo is so full of crap, they should be offering 6%, 8% even 10%

...on Series EE bonds if they want Americans to increase savings now. The whole Bush policy and doctrine on economics has a sinister, evil tone about it which threatens all that we have.

[Up2Late]

2. Yup, holding 3.6% bonds is going to REALLY Suck in 5 to 10 years

This is really going to hurt folks trying to save for their kid's collage tuition.

I get the feeling that, when * is finally out of office, he'll probably leave the country and hide in some 3rd world country some where. He'll almost have to, unless they rig the next election for one of his stooges, so they can pardon him, that is.:mad:

on edit: I just found this at the home page linked from the article savingsbonds .com
(Which actually goes to Savings bonds .gov)

"Obtain information about Treasury securities you own and find out if they're still earning interest."

if!

:grr:

[ret5hd]

3. i tbelieve the "if" in that statement refers to the fact that...

some people (foolishly) hold onto bonds after they have matured, and thus are no longer earning anything.

[Up2Late]

4. Oh O.K., I get it

Again, just so anyone reading this knows That was at <http://savingsbonds.gov>

[whistle]

10. Treasury bonds that stop paying interest.....how can that be?

...Oh I know, Shrub said they are worthless paper! And Dubya being The Great Dictator, "So let it be said. So let it be done!"

[More Than A Feeling]

5. Wow, Bush has real issues with non-marketable securities

He should probably get some professional help for his irrational hatred of personal savings bonds and social security bonds.

[davhill]

6. I cashed in all my bonds

The first day of the Iraq invasion. I did not want to be financing the murder. If I could get away with not paying the share of my taxes going for the war I would do that too. But that would be hard to calculate since this war is exclusively financed on the installment plan.

[Theduckno2]

7. There is still one good thing about savings bonds,

they protect your principal. Under Bush's Social Security privatization scheme, nothing guarantees the money you put in. I vaguely remember a story about Eastern European immigrants coming to this country before the Great Depression. They didn't trust banks but didn't feel safe holding cash, so they bought postal money orders (no longer available I believe). When the Crash came and all the banks went on holiday,they could redeem their money orders for cash at the post office. Sure they didn't earn any interest this way, but they had all their money and cash when there was very little to be had.

[strategery blunder]

8. Bu$h* is shooting himself in the foot

not only for the reasons that other posters have mentioned, but also, fewer bond buyers will make it that much harder for bu$h* to finance his war debts.

[Sgent]

9. Savings bonds rates

are set like every other US Govt. obligation -- by auction of who will pay the lowest. SB rates are 90% of the latest 5 year treasury auction.

[Canuckistanian]

11. "Worthless IOU's"?

Well, it looks like Shrub is doing his best to make that come true!

[struggle4progress]

12. kick