ZERO (IN)TOLERANCE
A
Low-Risk Alternative to Current Zero-Interest Rates
by
Brent L. Leonard
Smashwords Edition
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Published on Smashwords by:
Brent L. Leonard
Zero (IN)Tolerance
Copyright 2010 by Brent L.
Leonard
ISBN:978-1-4524-7531-8
All rights reserved. Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise) without the prior written permission of both the copyright owner and the above publisher of this book.
Smashwords Edition License Notes
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The author has a website that can be visited for more information: www.brentleonard.com
The author also writes a blog on Stock Market Sentiment at www.mktsentiment.blogspot.com and Deep In The Money at www.ditmcalls.blogspot.com
The author can be reached by email for questions and comments at: brentleonard59@gmail.com
Examples of securities are not recommendations; there are risks in trading options and stocks, especially in rare cases of dramatic downturns.
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F O R E W O R D
The purpose of this book is to suggest an alternative to the current zero interest rates that are being offered in riskless investments such as CDs, short term Treasuries, and Money Market Funds—securities that prudent investors, such as seniors, low wage earners, etc. depend on for retirement.
Because of the profligate excesses of the recent past, responsible for the deflationary Recession that we find ourselves in, the Federal Reserve Bank has artificially lowered borrowing rates to “save” the financial system, as well as the American and global economies via the Invisible Hand of Adam Smith. Unfortunately, these riskless investors have gotten the back of the Hand, as they try to survive on rates that dropped from 6% to zero over a couple years—forcing them into more risky investments, such as stocks and bonds, which as we have seen this decade could wipe out their savings. This low rate becomes negative when income taxes, Inflation and a weakening Dollar are factored in. Other alternatives, such as gold, copper, and commodities, could also reach bubble status by the time the smart money has fully entered the markets.