Treasury Bills

How to Buy Treasury Bills (and earn more!)

Short term interest rates are rising – and that has the stock market in a tizzy. After all, who needs to take the risk in stocks if you can earn interest safely in an FDIC-insured  bank account or in Treasury bills, which are IOUs directly from the government?  But savvy investors need to make sure […]

T-Bills beat CDs

U.S. Treasury Bill interest rates are still mostly higher than the comparable bank CDs. As of March 11, 2024, the yield on a 13 week (3 month)T-bill is 5.4%, and on a 26 week (6-month) Treasury bill is 5.3%. That’s what you received if you participated in the weekly T-bill auction described below. It’s easy […]

The Wizard of Fed

Every Fed meeting is second-guessed by the markets –and the latest is no exception. No one can deny the power of the Fed to impact the economy by increasing or cutting interest rates. But not even an informed group of experts can set the perfect rate to keep the economy moving on an even keel […]

Turning Points

Summer is over and autumn is here. You’re not surprised to see Halloween candy on the shelves of your local WalMart. Fall is just part of the cycle of nature, predictable in general — although we still may suffer with some high-temp days and nights. Summer is over. If we’re not surprised by the cycles […]

Surviving a Recession

Will you be able to survive a recession? The odds are rising that a recession will arrive sooner rather than later. In fact, here are a few signs a recession could be just around the corner. • Credit Card Delinquencies Rising: Credit card debt in America has now topped $1 Trillion for the first time […]

High Rates for How Long?

Do you have “chicken money” – money that you want to protect from risk? If so, it should be in short-term CDs, or money market accounts, or short term Treasury Bills – IOUs from the Federal government. Those are the safe places to stash your cash. When interest rates were so low just a few […]

What’s Your Score?

The United States’ credit standing was downgraded from AAA to AA+ by Fitch, one of the rating agencies. It was a very public slap in the face for the United States, but not the first time this has happened. In 2011, the S&P ratings agency also downgraded the country to AA+. Since then, America has […]

I Bond Rates Drop Sharply

Updated 04/29/23 The new rate for Series I bonds purchased after May 1, 2023 is 4.30%. That includes a new higher base rate of 0.90%, which will stay with the bond for its entire lifetime. Future inflation adjustments on these bonds will be made on top of that 0.90% fixed base rate. The current inflation […]

Speaking of Safety

In the search for safety of your financial assets, there’s a sudden recognition that the FDIC doesn’t cover deposits above a certain limit– $250,000. You can extend that coverage through the use of joint accounts or trust accounts, but that begs the question of why you want to juggle those accounts when it is easy […]

Money, markets, and Fear

Given the recent headlines, I just want to say a few words about the safety of your money in the bank — and all the “end of the world” financial stories, memes, and postings that have started to circulate— again. This is not the first time Americans have worried about the survivability of the US […]

Banking Crisis Update — What Happened?

Update: March 19th. I posted the article below on Monday, March 13th — and everything I wrote has been verified over the past five days. The “crisis of confidence” spread to other regional banks, and one big Swiss bank that had previously suffered from poor management and made serious lending errors. But over the past […]

What Happened to the Market?

Clint Eastwood said it memorably: “Do you feel lucky?” Now, superimpose Fed Chairman Jerome Powell’s stern visage squinting at the markets and asking that question. It’s a message to stock market bulls who started out the year in euphoria, believing the Fed was about to declare victory over inflation — and might even be forced […]

Money Tips for the New Year

1. Get Organized –That’s the most important thing you can do to start the new year. You can’t go forward if you don’t know where you’re starting from! Lists are important, as are files – whether on paper or on your computer. A disorganized mind will destroy your financial future. To help you in this […]

Rollover Now

If you have several IRAs or leftover 401(k) plans from previous employers, this is a perfect time to consolidate them in one IRA rollover account. Not only will this simplify your financial recorded-keeping, but it will create an opportunity to access one of the best and safest investment opportunities for your money. So don’t let […]

Housing Recession

Americans may be excused for wondering where this recession talk is coming from. Economic growth (GDP) turned nicely positive in the third quarter. The stock market has rallied, regaining some, though not all of this year’s losses, on hopes the Fed will declare victory and ease up on interest rate hikes. Consumer confidence dipped a […]

Fixing Inflation

There is absolutely no doubt anymore. Inflation is deeply embedded in the economy. Today’s report of inflation at 8.6% in May is the highest since 1981. The only question is what can be done about this punishing tax that hits hardest at low-income families and seniors on fixed incomes. What will it take – and […]

Ravages of Inflation

Inflation is very simply the debasement of the currency. Your money buys less stuff. Inflation starts out barely noticeably — and is often welcomed as a sign of growth and prosperity. But like kudzu – that fast-growing green vine that has taken over many landscapes – the devastation takes a while to reveal. With kudzu, […]

Debt Ceiling & Shutdown

Mark Twain said it best over 150 years ago: “No man’s money is safe while Congress is in session!” Or something like that, reportedly. So, it’s not news that the legislature makes changes that impact ordinary people in unexpected ways. What’s relatively new is the acrimony that seems to prevent Congress from coming to compromises. […]

Our National Debt

Our national debt is the sum of all the money we have borrowed over our country’s history. It is currently nearing $29 trillion. Sadly, we have grown accustomed to such huge numbers. Now they’re called “MEGO” numbers. That stands for “my eyes glaze over!” To put numbers into perspective, the national debt reached a record […]

Power Play: Fed & Government

Who can do the most to help the economy recover: the Federal Reserve or Congress? Ironically, the economic question may be dominated by science. A vaccine to combat COVID-19 could do more to solve our financial problems than anything the Washington powers can create. A vaccine would not only be a health solution in the […]