Low interest rates: economic boom or bust?


By Marcie Geffner - Bankrate.com

Federal Reserve Chairman Ben Bernanke says low interest rates stimulate the U.S. economy but for savers, low rates aren't all that great, as Bernanke himself also said in a speech Oct. 1 in Indianapolis.

"People who rely on investments that pay a fixed interest rate such as certificates of deposit are receiving very low returns -- a situation that has involved significant hardship for some," Bernanke said.

Here's why today's low interest rates haven't been a welcome benefit to many consumers.

Just ask Pablo Solomon. The artist, 65, lives on a ranch north of Austin, Texas, with his wife, who manages the business side of his endeavors.

Read on: http://www.bankrate.com/finance/savings/low-interest-rates-economic-boom-or-bust.aspx?ic_id=Top_Stories_link_2