Re:Magical Thinking
by jbooth on Wednesday September 21, 2016 @11:33AM
(#12549115)
Not to mention, the social security surplus is entirely invested in those bonds and has been for 80 years or whatever. They'd have to figure something else out if there were none for sale.
[ Parent
| on HN ]
you're the one who posted the return on these bills. it's pretty clear they need to figure something else out anyway, right?
Not necessarily. They're looking to stash the money someplace safe that keeps up with inflation, not to make gains.
Inflation in the US is 0.1% or less? Uh huh.
More like 1%. Sometimes the rate is higher than inflation, since 2008 it's been lower.
The point is that SS administrators would rather lose a small amount of value than put that giant-ass lump of money into the market. It creates risk, and more importantly, creates a situation where the government is manipulating stock prices with their picks due to the massive size of the trust fund.