Why are speculators so aggressive in their demand for low interests? The low interest regime leaves individuals with no avenue but to risk their savings in speculative ventures, explains S Gurumurthy.
Americans' wealth last summer suffered its biggest quarterly loss in more than two years as stocks, pension funds and home values lost value.U.S. household wealth takes biggest hit since 2008
At the same time, corporations increased their cash stockpiles to record levels.
Roughly half of U.S. households own stocks or stock mutual funds. Stock portfolios make up about 15 percent of Americans' wealth. That's less than housing but ahead of bank deposits, according to the Fed's report.
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