From Zero Interest Rate To Zero Retirement: How The Fed Doomed Elderly Americans To Endless Work
Submitted by emalvini on Mon, 10/08/2012 - 21:05From Zero Interest Rate To Zero Retirement: How The Fed Doomed Elderly Americans To Endless Work
Submitted by Tyler Durden
10/08/2012 11:27 -0400
Excerpted from PIMCO Viewpoints: What's Your Number at the Zero Bound?
The math of what happens when assumed rates of return go down, driven by a pro-active ZIRP from the Fed, is pretty straightforward. To make up for this, PIMCO notes that those approaching retirement have three choices: a) save more, b) work longer, or c) tighten their belts in retirement. Each of these are clear, individual family choices, but what happens when the whole of society is faced with the same dilemma? What works for one household can be grossly sub-optimal for society.
For now, let us assume that Americans would reject the idea of pre-commitment to significant future belt tightening. They may find that when they get to retirement they have little choice, but this is not something it seems they would rationally choose before having to do so.
Read more: http://www.zerohedge.com/news/2012-10-08/zero-interest-rate-...
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Carousel at 30 bitchez!
http://www.youtube.com/watch?v=LSUAAKFLoL0
honestly Logan's Run one of the freakiest scenes ever and HONESTLY I think the writers were onto something....
Surely the Bernank is aware
Surely the Bernank is aware of and has accounted for this phenomenom and has it built into his mind control money printing algorithm.
Or maybe he just likes screwing old peeps.
"When governments fear the people, there is liberty. When the people fear the government, there is tyranny." - Thomas Jefferson
Postponing peoples
Postponing peoples retirement, was what "stimulus" was always all about in real terms, once you look past all the intervening monetary and fiscal mumbo-jumbo.