Comments on: FY-2007 Savings Bond investments weak http://www.savings-bond-advisor.com/fy-2007-savings-bond-investments-weak/ Wed, 03 Dec 2008 22:45:56 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/fy-2007-savings-bond-investments-weak/#comment-3248 Thu, 03 May 2007 14:57:19 +0000 http://www.savings-bond-advisor.com/fy-2007-savings-bond-investments-weak/#comment-3248 Hi Vince - my guess would be that the country's current leadership sees Savings Bonds as just another of FDR's New Deal programs that needs to be dismantled or privatized. For Savings Bonds, this can be accomplished simply by making them uncompetitive with bank CDs and other private investments. The change in how EE rates are calculated, with a bit of help from the inverted yield curve, seems to have accomplished that. Tom Adams Hi Vince - my guess would be that the country's current leadership sees Savings Bonds as just another of FDR's New Deal programs that needs to be dismantled or privatized.

For Savings Bonds, this can be accomplished simply by making them uncompetitive with bank CDs and other private investments. The change in how EE rates are calculated, with a bit of help from the inverted yield curve, seems to have accomplished that.

Tom Adams

]]> by: Vince Gallo http://www.savings-bond-advisor.com/fy-2007-savings-bond-investments-weak/#comment-3244 Thu, 03 May 2007 12:08:52 +0000 http://www.savings-bond-advisor.com/fy-2007-savings-bond-investments-weak/#comment-3244 Tom: I wonder why the government is so hostile to U.S. Savings Bonds. Do you know why? One would think that since our national household savings rate is so low that it would make these bonds more attractive. When the EEs were tied to the five year Treasury Note (90% of the average yield for the six months prior to issue)they were irrestible. Basing current EE bond rates on 10 year bonds & fixing that rate for at least 20 years is a sign that the government no longer favors these instruments. But Why?? Tom:

I wonder why the government is so hostile to U.S. Savings Bonds. Do you know why?

One would think that since our national household savings rate is so low that it would make these bonds more attractive. When the EEs were tied to the five year Treasury Note (90% of the average yield for the six months prior to issue)they were irrestible. Basing current EE bond rates on 10 year bonds & fixing that rate for at least 20 years is a sign that the government no longer favors these instruments. But Why??

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