I, by far am no Economics whiz, knowing just enough to get by most times. I had a few questions I wanted to ask on here to get some input and enlightenment.
First, I wanted to know the thoughts that folks have on supplemental retirement plans that have the options of going with a guranteed return, as opposed to putting it into actual stocks. I know there are many who feel that going with stocks works out in the long run, but in todays volatile stock market climate, it seems to me that sticking with a guranteed return options is the best way. Right now, through the State Employees Deferred Comp program I have 75% going into guranteed returns and 25% going into a Dodge and Cox stock fund.
The second question has the potential to take this thread into murky waters, so lets keep it civil and just have good discussion about it. With the price of nearly everything going through the roof, namely gas, I hear a lot of talk for the reasons why.
One of the main reasons is the value of the U.S. dollar against other world currencies. I have heard some so called consumer experts say that one way to force prices to come down would be to start raisning the interest rates back up, but there is a fear that will make credit much harder to get.
I guess to me, it seems that credit being so easily accessible has been a large problem in the scheme of the economic climate that we are now in. I know the loan companies are very culpable in this also, but I feel there were many people who were in no position to get credit granted to them that did, and now it's coming back to bite them and their lenders.
With every rate cut the Fed proposes, it seems that things are going up that much higher in price. I hear them say they are trying to stave off a recession, but it seems these rate cuts are nothing more than putting bubble gum on a leaking dam.