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TIPS is like buying fire insurance from an arsonist.
by snikeris 8y ago
TIPS is like buying fire insurance from an arsonist.
- ryanwaggoner 8y agoSounds perfect: if they have to pay out, they’ll go burn someone else’s building down instead.
- whitepoplar 8y agoIf you're implying that the Fed can rig official inflation rates, that's not really true. The bond markets would treat inflation-rate fibbing as a quasi-default, so the Fed has more to lose than gain from doing this.