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at some point the Fed will just decide to inflate those pensions down to half or a third of the real value
by spoonjim 5y ago
at some point the Fed will just decide to inflate those pensions down to half or a third of the real value
- lumost 5y agoThis is really what it will come down to. Real interest rates are falling to 0. The fed can prop the markets up to guarantee any paper return or simply let pensions etc go bust. At some point the economy will need to rebalance assets in order for interest rates to rise, but there is no preordained condition that requires this to occur.
- lotsofpulp 5y agoYes, which is why I say VOO/VTI are the real TIPS (treasury inflation protected securities).