The markets may have needed a rate cut yesterday but it really put another hurt on our seniors. Let’s not forget that a huge percentage of our population is retiring or retired and their portfolios are moving increasingly towards fixed income. Income which is less “fixed” each time the Fed lowers rates. Many of our citizens in their 60’s, 70’s and 80’s are fiscally conservative and very savvy. It’s highly unlikely they are living in houses financed by adjustable rate mortgages or in any way responsible for or affiliated with the subprime mess. So they are not getting the benefit of a cheaper mortgage thanks to Ben but they did get a cut to their income. Meanwhile, property taxes at local government levels are squeezing the portion of their budget devoted to shelter at the same time that their home prices are at risk of declining. As for expenses, the inflation that our Central Bankers decided to ignore are especially hard on our seniors. Economists may love pretending that core inflation is the only thing that matters but just ask any retired person and find out whether energy (home heating/power) and food are significant parts of their wallet. As for medical costs - those aren’t getting any cheaper.

We all get caught up in our own lives and the value of our portfolios. Now that the excitement from yesterday’s rate cuts have made many investors happy, please take a few moments to reflect on older friends, neighbors or family members that need your assistance. I suspect they have been hurt more by yesterday’s decision than the rest of us have been helped.