3 ms·

God, the fools they would need to find to buy these sort of instruments... There is no way whatever rate they peg these at are going to cover inflation over th

God, the fools they would need to find to buy these sort of instruments... There is no way whatever rate they peg these at are going to cover inflation over that time period...

chewz 7y ago
> the fools they would need to find to buy these sort of instruments These fools run your pension fund.
- benj111 7y ago
  Would a 100 year bond be a good match for an annuity? (I guess that's what you're making reference to). 30 year bonds match the expected life expectancy of someone buying an annuity, 100 year bonds not so much.
  - chewz 7y ago
    Longer time to maturity implicates larger interest rate risk. But with rates near zero there seems to be only one way to go. In higher interest rate environment Treasury might repurchase bonds with discount. So this is free money. On the other hand if US goes Japanese for next decade or two it might be last chance for holding gov bonds without paying for the privilege ;-)
- hew 7y ago
  What pension fund?
  - coryrc 7y ago
    The public employee ones your taxes backstop and guarantee 7% returns despite only getting 3-5%
  - reaperducer 7y ago
    My company offers a pension, and a 401(k). But then, I'm not in SV.
- spamizbad 7y ago
  I have a pension fund?
quaquaqua1 7y ago
All you have to do is tell people to put money into their 401k "FUTURE SECURE FUND (TM)###" and let the fund managers steer all the money to the 50 year bonds :) --------- ###Terms and conditions apply, see fund prospectus for details. Past performance does not guarantee future results. Complete loss of funds and/or negative returns may occur.
- microcolonel 7y ago
  We just need to ease, quantitatively, to make the contracts come true in the numeric sense. Because of course, prices are costs. ;- )
  - quaquaqua1 7y ago
    Haha yes exactly. We also need to do so before a recession, to prevent a recession. Everybody loves big numbers. Especially presidents. They can put their faces on the new bills that will be required.
somebodythere 7y ago
More for me :)

God, the fools they would need to find to buy these sort of instruments... There is no way whatever rate they peg these at are going to cover inflation over that time period...

chewz 7y ago

> the fools they would need to find to buy these sort of instruments These fools run your pension fund.

benj111 7y ago
Would a 100 year bond be a good match for an annuity? (I guess that's what you're making reference to). 30 year bonds match the expected life expectancy of someone buying an annuity, 100 year bonds not so much.
- chewz 7y ago
  Longer time to maturity implicates larger interest rate risk. But with rates near zero there seems to be only one way to go. In higher interest rate environment Treasury might repurchase bonds with discount. So this is free money. On the other hand if US goes Japanese for next decade or two it might be last chance for holding gov bonds without paying for the privilege ;-)
hew 7y ago
What pension fund?
- coryrc 7y ago
  The public employee ones your taxes backstop and guarantee 7% returns despite only getting 3-5%
- reaperducer 7y ago
  My company offers a pension, and a 401(k). But then, I'm not in SV.
spamizbad 7y ago
I have a pension fund?

quaquaqua1 7y ago

All you have to do is tell people to put money into their 401k "FUTURE SECURE FUND (TM)###" and let the fund managers steer all the money to the 50 year bonds :) --------- ###Terms and conditions apply, see fund prospectus for details. Past performance does not guarantee future results. Complete loss of funds and/or negative returns may occur.

microcolonel 7y ago
We just need to ease, quantitatively, to make the contracts come true in the numeric sense. Because of course, prices are costs. ;- )
- quaquaqua1 7y ago
  Haha yes exactly. We also need to do so before a recession, to prevent a recession. Everybody loves big numbers. Especially presidents. They can put their faces on the new bills that will be required.

somebodythere 7y ago

More for me :)