Comments on: Savings Bond Alert #030 http://www.savings-bond-advisor.com/savings-bond-alert-030/ Thu, 04 Dec 2008 00:29:17 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/savings-bond-alert-030/#comment-6984 Wed, 15 Aug 2007 14:58:36 +0000 http://www.savings-bond-advisor.com/savings-bond-alert-030/#comment-6984 Joseph - the part of the I bond rate that is adjusted every six months for all I bonds is based on the CPI, so yes, a higher CPI means a higher I bond rate for all. The fixed part of the I bond rate, which you get for all time when you buy the bond, is sensitive to market interest rates, so to the extent the Fed is successful in lowering interest rates, yes, that could have an effect on the fixed portion of the I bond rate. Of course, that could be inflationary - which would raise the other component of the rate - so you can see this is very complex and no one can really predict the future in this area. Tom Adams Joseph - the part of the I bond rate that is adjusted every six months for all I bonds is based on the CPI, so yes, a higher CPI means a higher I bond rate for all.

The fixed part of the I bond rate, which you get for all time when you buy the bond, is sensitive to market interest rates, so to the extent the Fed is successful in lowering interest rates, yes, that could have an effect on the fixed portion of the I bond rate.

Of course, that could be inflationary - which would raise the other component of the rate - so you can see this is very complex and no one can really predict the future in this area.

Tom Adams

]]> by: joseph digeronimo http://www.savings-bond-advisor.com/savings-bond-alert-030/#comment-6982 Wed, 15 Aug 2007 14:05:45 +0000 http://www.savings-bond-advisor.com/savings-bond-alert-030/#comment-6982 CPI is running higher lately. Does that mean that the next I-bond rate will be higher than the current rate? Are I-bonds and EE bonds dependant of the FED's rate decisions? Speculation is that the FED will lower rates soon because of credit crunch. Will this effect next change in bond rates? CPI is running higher lately. Does that mean that the next I-bond rate will be higher than the current rate? Are I-bonds and EE bonds dependant of the FED's rate decisions? Speculation is that the FED will lower rates soon because of credit crunch. Will this effect next change in bond rates?

]]> by: Larry http://www.savings-bond-advisor.com/savings-bond-alert-030/#comment-3253 Thu, 03 May 2007 18:23:53 +0000 http://www.savings-bond-advisor.com/savings-bond-alert-030/#comment-3253 I think Mike is right. Seems we have the chineese and 3rd worlds making the butter (and it is sweet), while the US makes the guns paid for by the chineese, or other 3rd world countires. there seems to be money, chasing money. I'm just trying to figure out the next bubble so I can get in on the ground floor. Real estate worked well for some, but the down payments that are now required are creating a flow into stocks. I think Mike is right. Seems we have the chineese and 3rd worlds making the butter (and it is sweet), while the US makes the guns paid for by the chineese, or other 3rd world countires. there seems to be money, chasing money.

I'm just trying to figure out the next bubble so I can get in on the ground floor. Real estate worked well for some, but the down payments that are now required are creating a flow into stocks.

]]> by: Tom Adams http://www.savings-bond-advisor.com/savings-bond-alert-030/#comment-3247 Thu, 03 May 2007 14:42:07 +0000 http://www.savings-bond-advisor.com/savings-bond-alert-030/#comment-3247 Mike - Well, either that or it's a world-wide bubble that will eventually pop. Tom Adams Mike - Well, either that or it's a world-wide bubble that will eventually pop.

Tom Adams

]]> by: Mike http://www.savings-bond-advisor.com/savings-bond-alert-030/#comment-3231 Wed, 02 May 2007 16:10:15 +0000 http://www.savings-bond-advisor.com/savings-bond-alert-030/#comment-3231 The yield curve has been inverted for awhile, and I heard threats of recession. It seems that everybody believes that this time is different. Many think that Federal Reserve has mastered its technique to eliminate the down cycle of economy. Everything has been appreciating in value: stocks, bonds, gold, etc. In the last several years, we learned that we can have butter and guns at the same time, so everybody is in the buying frenzy. The only people who suffer are savers! The yield curve has been inverted for awhile, and I heard threats of recession. It seems that everybody believes that this time is different. Many think that Federal Reserve has mastered its technique to eliminate the down cycle of economy.

Everything has been appreciating in value: stocks, bonds, gold, etc. In the last several years, we learned that we can have butter and guns at the same time, so everybody is in the buying frenzy. The only people who suffer are savers!

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