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+title: Where are savings accounts?
+date: 2015-02-03T14:05:01
+tags:
+  - politics
+  - economics
+---
+
+
+(my comment on `the EconTalk show on banking`_)
+
+.. _`the EconTalk show on banking`:
+    http://www.econtalk.org/archives/2015/02/luigi_zingales_1.html
+
+@John Reisink
+
+I am afraid the reason is that we don’t have that much choices.
+
+Which leads me to the issue which I am quite surprised nobody discusses
+at all (what am I missing?). As I understand the dim archaic past of
+something like thirty years ago, in a civilized country then (in that
+time I was growing up in the Communist Czechoslovakia, so no
+civilization for me), people took their excess money to their local bank and
+they got some reasonable interest on it. What I do remember is that when
+I was moving for our PhD studies to States in the year 2000 we got in
+the university FCU something like 4% p.a. on the savings account.  Then
+the Internet Bubble burst, and of course rates went down to around 1%
+p.a., so I stopped bothering with savings account and I had to start to
+invest somewhere else. Meanwhile, we didn't have enough money so
+investing stopped being interesting to me at all. However, looking
+around me now, I don't see much change from those around-1%-pa times.
+Still the same FCU has today on 18month certificate rate 0.8% p.a. which
+kind of doesn’t make any sense to use.
+
+Is it just me, but this is all result of politicians (BOTH Republicans
+and Democrats) swindling their way out of the economical situation by
+robbing not only future (by creating incredible loans ... look at
+Greece to see where we are heading globally, IMHO) but also by stealing
+all savings by keeping the interest rate artificially low. It is funny
+to hear all those bankers to cry out for more loans, when they keep
+interest rate at 0%! Who in the world would loan a money, when a) they
+have none in the bank (because nobody saves anything), and b) the
+interest is so tiny, that it doesn't make much sense to loan.
+
+Am I completely wrong, or it is a big white elephant in the room which
+is constantly overlooked by everybody? Is there some show on EconTalk
+about this issue?
+
+Am I right thinking that Mr. Greenspan, Bernanke, and Ms. Yellen wiped
+out consumer banking and small people savings? Why should I invest on
+the market myself?  I would rather handed my money down to some
+specialist who would do it better than me (considering, I would get some
+reasonable interest back)?
+
+What would actually happen if the central banks of whole world stopped
+meddling with the interest rate and let it stay at some higher level? Of
+course, the first reaction would be radical crash of the market, but if
+you stayed on this normal interest rate for longer time, wouldn't the
+market accommodate and result would be a bit more healthy in total?