There are several banks offering FDIC insured savings/checking accounts at decent rates. I have one at a little over 5%, higher than my school and auto loans. It’s not the 10% YTD gain of the stock market, but with the likelihood of rates going up, but benefits are inverse.
I think everyone here has pretty much covered the answer.
The value of the dollar is falling daily to the Yuan also, decreasing our buying power in China. The devalued dollar is going to be the bigger issue.
The FED will have no choice but to raise rates, and you can infer as more of the widespread dishonesty in housing the last 5 years surfaces, it’s more likely that lenders will be expected to help those facing foreclosure rather than the government.
I don’t think anyone who bought a house they couldn’t afford in 2003 is going to be happy with their decision in 2010, when those who saved money for the last 7 years put a 20% down payment on the same house at a 30-50% lower price than today. Even if rates don’t go up, and savings loses value to inflation, it’s still better than a mountain of debt and negative equity.