Friday, May 6, 2016

ZIRP Threatening Teamsters Pensions


How's that ZIRP workin' out for you?





12 comments:

Jeff65 said...

Since when do we need interest payments to finance retirees with dignity? Are you out of paradigm Matt?

Matt Franko said...

Never going to happen Jeff

Tom Hickey said...

Never going to happen Jeff

Defeatism?

Matt Franko said...

we have to accommodate savers Tom...

Bob said...

A haircut and a trip to the glue factory will take care of those teamsters ;)

Tom Hickey said...

we have to accommodate savers Tom...

According to MMT, saving desire is accommodated by $NFA, not with interest rates. Savers get a free parking spot, not a paid one. If they want more return, then they should understand that they have to accept higher risk.

That's capitalism, actually. No free lunches.

Ryan Harris said...

When pension funds stop investing with hedge funds and Goldies profits suffer as a result, we'll get a fiscal spending boost followed by higher rates and inflation faster than a sneeze through a screen door. You can hang your hat on it.

Matt Franko said...

"no free lunches..."

Well what is it when like Jeff says we should finance retirees who didnt save? Is that a 'free lunch'?

Dont savers who defer present for future consumption deserve some additional compensation for their deferral?

Not to mention that actuaries who have analyzed these pension funds have assumed some NON_ZERO risk free rate over time as THEY have been trained to expect... now monetarist morons think they can keep that same rate at zero for near a decade just when boomers start to retire and then this is supposed to HELP????

Why not just use the present situation to instruct (not to mention help provision seniors...) instead of advocating a continuation of this monetarist moron ZIRP policy...

Tom Hickey said...

Well what is it when like Jeff says we should finance retirees who didnt save? Is that a 'free lunch'

I said, no free lunches under capitalism. Free lunch is "socialism."

If socialism, using interest rates as a distribution mechanism is silly because it is poorly targeted and inefficient. Predistribution is more suitable for socialism. which is what Jeff is proposing.

Simsalablunder said...

"Well what is it when like Jeff says we should finance retirees who didnt save? Is that a 'free lunch'?

You mean poor people who can't afford to save due to unemployment or shitty pay checks? So your solution is: they should have saved? Great solution…

Matt Franko said...

No I'm saying don't screw over all the people who were able to and did.... Most people probably thru employer/Union sponsored plans....

Tom Hickey said...

Why make them slaves to changes in the cb policy rate? Do fiscal transfer.