Not content with working on regulating crypto platforms withing an inch of their lives, Gensler, chair of the SEC, is now giving college students the advice to start saving “early” and “often”. He quotes 8% as a possible yield from the savings.
In a video published on Gensler’s Twitter account yesterday, he gives students advice on what to do with their ‘money’. In cheery and avuncular mood, he suggests that they put aside $5 a week, and says that if they do this, then they may have $130,000 plus saved up by the time they reach retirement.
His figure of 8% yield on the savings is confidently plucked out of the air as he breezily expounds on this advice that will no doubt make students a very large sum of ‘money’ at the end of their working lives.
He doesn’t refer at all to the fact that 8% is absolutely pie in the sky as far as fiat savings rates go. According to Bankrate.com, the average savings account rate is 0.06% based on a weekly survey of financial institutions as of August this year. Even without doing the sums, it can certainly be imagined that 0.06% won’t even come close.
Oh, and everyone’s favourite uncle didn’t refer either to the rate of inflation. This figure is 5% if one believes the official figures. Nearer to 10% would be a much more pragmatic view.
The reaction on Twitter was generally much hilarity, with one retweeter stating:
“I challenge anyone in crypto to watch this video without laughing, I don’t think you can do it”
Willy Woo, the crypto analyst quipped:
“It’s a pity that all the good investments for savings are being put out of reach by SEC regulation,”
Joking aside, for such a prominent figure in the traditional financial system to be giving such appallingly bad advice to the youth of America is much cause for concern.
Decades ago, this advice may well have been excellent. Promoting an attitude of putting wealth aside for the future is to be commended. However, those times are no longer with us.
The monetary system has been destroyed by the banks and the greedy people who hold power in the financial institutions. Recommending that anyone save fiat, let alone vulnerable students, is akin to getting them to put their savings directly into the bankers’ pockets.
Shame on you Mr Gensler. Your main remit is to protect investors. Do your job, and regulate the new and innovative financial platforms in the crypto industry in a sensible and productive way. Allow the college students to actually make some wealth for their futures.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.