The high rates we have now are needed to combat rising inflation.
High inflation, as any decent economics text will tell you, is much less preferable to low, stable inflation.
There are many problems caused by high inflation but one is that retirees see the purchasing power of their savings eroded.
So, in effect, what you are suggesting is that people who worked hard during their life to build up a nest egg deserve to have it destroyed because investors who gambled on an ever-rising sharemarket are now facing large paper losses and their wealth takes precedence.
And gambled is the right word. When the market more than doubles in less than 5 years, to expect there to be any sort of a margin of safety buying at such levels is unbelievable. If you bought back in '03-'05 you should still be up between 20% and 100% on you investment.
Thank god I don't live in a society where your view is in any way acceptable.
And you wonder why investors get a bad rap in most communities.
