Suck it up savors

More precisely, the 100 biggest funds are now paying 0.05 percent annually, on average, a yield as low as it has ever been, according to Peter G. Crane, the president of Crane Data of Westborough, Mass.
“It’s so low it’s a joke,” Mr. Crane said. “At that yield, it would take more than 1,000 years to double your money.”
Right now, investors need to be thinking about interest-rate risk,” he said. The problem is that interest rates — at both the short and the long ends of the yield curve — are likely to rise this year if the economy keeps expanding.

When bond yields rise, their prices fall. The effect is magnified for longer-term securities, so a 30-year Treasury bond would fall in value much more sharply than, say, a six-month Treasury bill. A money market fund would benefit as interest rates rise.

“Basically, savers are going to have to suck it up,” said Mr. Crane at Crane Data. “Yields are so low that they’re getting almost nothing in return, but this is not a time to play offense. Remember, if you’re holding a money market fund or a C.D., you’re there because you don’t want to lose money. This is not the time to take a lot of risks.”

With an economy where people who are not willing to spend money and want to save it and gain money over long periods of time but can't, people will either have to live with that money stayin in the bank making nothing or spend it wisely. If people aren't going to put as much money in the bank then for them to loan out to people, their is less money circulating. Do you think people not investing their money in CD's or into long term securities will hurt banks and the flow of money? Or will their money being saved and more spent in the economy help out? Would you still put your money in a CD?