March 04, 2004

Savers Driven to Slaughter in the Equity Pen: Quote of the Day

From the Dalla's Feds contribution to the Beige Book we ge more evidence that savers are giving up on low rates and headed into equity markets. It's a different kind of capitulation, giving up on cash in favor of stocks. Short-term could mean higher stock prices. Long term, poorer Americans. FRB: Beige Book - Full report"Financial Services Contacts say that deposit growth has slowed, which they attribute to money flowing back into equity markets. Several respondents commented that CDs and other instruments are being liquidated. "


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