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invested in siloed low risk fixed income vehicles ensuring that the funds don't circulate through the broader economy.

• WalterBright 9y ago
  The reason fixed income vehicles pay out income is because those funds are spent on productive investments. So, they do circulate through the broader economy. There's no silo of cash sitting somewhere paying dividends.
• ericd 9y ago
  Low risk fixed income doesn't currently keep up with inflation.
  • sokoloff 9y ago
    Yes, it does, at least in the case of TIPS: http://www.investopedia.com/terms/t/tips.asp http://www.investopedia.com/terms/t/tips.asp
    • ericd 9y ago
      Actually, almost by definition TIPS don't, because you're taxed on the inflation adjustment.