Seniors Sour Over Prime Rate Cuts

[dArKeR]

"I think seniors have been going through a financial rape,"
Frank Kaiser

Joanne Golder says she's been dealt a bad hand by the Federal Reserve.

"It's not good for senior citizens," says Golder.

Like many of her fellow retirees, Golder's income depends on the interest from her savings. But, as CBS News Correspondent Mika Brzezinski reports, when those interest rates go down, so does her income.

"It's a difference in my income of almost $250 a month," says Golder. "Everyone says, 'low rates – hey, good news - buying cars, buying houses.'

"Seniors aren't doing that anymore, they're not buying houses anymore or cars."

http://www.cbsnews.com/stories/2003/07/28/eveningnews/ends/main565443.shtml

[ramapo]

1. Bad news for fixed incomers

Imagine you're a senior who had been supplementing Social Security with some interest from CDs or bonds.

You might now be in financial trouble.

Food, energy, medical costs rise. Your income drops. Less (if any) discretionary income. Less spending on the grandkids.

Low interest rates are not altogether a good thing.