First note of the day: R.I.P., Gene Wilder. The Waco Kid may not be with us, but he was and always will be the fastest gun hand in the world. Mr. Wilder brought a unique talent and perfect timing to the art of comedy; he’ll be missed.
Incidentally: Can you imagine the howls of outrage from lefties and Social Justics Warriors (SJWs) were Blazing Saddles filmed and released today? And yet it stands alone as one of the funniest movies ever made, co-written by the Jewish Mel Brooks and the black Richard Pryor.
Moving on: Here’s an interesting tidbit our of Germany: German Savers lose Faith in Banks, Stash Cash At Home. Sound familiar? Excerpt:
German savers are leaving the security of savings banks for what many now consider an even safer place to park their cash: home safes.
For years, Germans kept socking money away in savings accounts despite plunging interest rates. Savers deemed the accounts secure, and they still offered easy cash access. But recently, many have lost faith.
“It doesn’t pay to keep money in the bank, and on top of that you’re being taxed on it,” said Uwe Wiese, an 82-year-old pensioner who recently bought a home safe to stash roughly €53,000 ($59,344), including part of his company pension that he took as a payout.
Interest rates’ plunge into negative territory is now accelerating demand for impregnable metal boxes.
Burg-Waechter KG, Germany’s biggest safe manufacturer, posted a 25% jump in sales of home safes in the first half of this year compared with the year earlier, said sales chief Dietmar Schake, citing “significantly higher demand for safes by private individuals, mainly in Germany.”
Central banks and planners have, for years, kept interest rates as close to zero as makes no difference, and some are dipping into negative interest rates – meaning that the bank will charge you to store your money in their vaults. This may be an inevitable consequence of currencies that have no worth other than a government stating “because we say so,” but the real problem is the poor incentives on saving. President Obama likes to tout the rise of the stock market during his tenure, but a big part of the stock market bubble is certainly flight capital driven into equity markets because ordinary savings return nothing, and the rest of that rise is because cheap money has driven reckless investment and manipulation.
If/when the Fed raises rates, what do you suppose will happen to the stock market?
(Note: Not a real plane crash, this is from the Nick Cage grenade Knowing.)
Hold on to your butts, True Believers.