Re:Magical Thinking
by jbooth on Wednesday September 21, 2016 @12:02PM
(#12549416)
Not necessarily. They're looking to stash the money someplace safe that keeps up with inflation, not to make gains.
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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.