From: rick++ 
Newsgroups: misc.invest.financial-plan
Subject: Re: inefficiency of the CD market
Date: Thu, 31 May 2007 08:26:56 -0500
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	=YV9l

> I can understand leaving a few thousand dollars in low-interest
> accounts for convenience or laziness, but who makes an active to
> decision to invest $100K at about 1% below market interest rates and
> thus throw away $1000 a year?

In the early 1980s hyper-inflation I cashed a CD early, took the tax-
deductable
90-day penalty and reinvested in a new CD with a an interest rate more
than
two percent higher.  You'd come out ahead then.  I recall the rates
peaked at
18% for up to a 30-year term.
Sometime in the mid-80s the stock market took off and started
returning more than CDs.