11-17-2016, 01:37 AM
(This post was last modified: 11-17-2016, 01:40 AM by Eric the Green.)
Ragnarök_62 Wrote:
I don't understand some of these terms ("discount rate" causes underestimate of bond liabilities, whut??)
But QE is over, so I don't know what Rags' complaint is. I don't know how QE fucks up returns on bonds and IRA returns. Probably a leap of logic there. And California and Illinois have nothing to do with QE.
What I do think is that within two years recession is returning, and without any hope of stimulus, QE will again be the only tool in the chest, so it will return, and interest rates will go back to zero, after an anemic rise in 2017. So, prepare for the worst in regard to pensions, and no improvement in interest returns for any of us.
Quote:Rags blames QE for a lot of this because QE fucks up returns on bonds and causes "risk on" behavior. Cool Rags hates QE because it fucks with his IRA returns. Hopefully folks in large voting block states like California and Illinois will see the light and conclude QE is fucking up their IRA's and their state finances.
I don't understand some of these terms ("discount rate" causes underestimate of bond liabilities, whut??)
But QE is over, so I don't know what Rags' complaint is. I don't know how QE fucks up returns on bonds and IRA returns. Probably a leap of logic there. And California and Illinois have nothing to do with QE.
What I do think is that within two years recession is returning, and without any hope of stimulus, QE will again be the only tool in the chest, so it will return, and interest rates will go back to zero, after an anemic rise in 2017. So, prepare for the worst in regard to pensions, and no improvement in interest returns for any of us.