Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Summers to World: Quit buying US Treasuries, dummies!
Old 09-07-2006, 10:05 AM   #1
Thinks s/he gets paid by the post
ladelfina's Avatar
 
Join Date: Oct 2005
Posts: 2,713
Summers to World: Quit buying US Treasuries, dummies!

Advice to Invest Less in U.S. Bonds
Foreigners Can Do Better, Summers Says

http://www.washingtonpost.com/wp-dyn...062101740.html

(hope that isn't too long a link)

Quote:
...he pointed out that at an annual return of 5 percent -- a conservative estimate for the long-run yield on a sensible stock portfolio -- the $2 trillion in excess reserves could produce average annual yields of about $100 billion. That is more than all the rich countries in the world spend on foreign aid to poorer countries each year.
__________________

__________________
ladelfina is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Summers to World: Quit buying US Treasuries, dummies!
Old 09-07-2006, 02:57 PM   #2
Thinks s/he gets paid by the post
wabmester's Avatar
 
Join Date: Dec 2003
Posts: 4,459
Re: Summers to World: Quit buying US Treasuries, dummies!

Let me get this straight. The central banks of emerging countries want to stabalize their currency, so they use US treasuries as a proxy for their own currency reserves. Makes sense. But this guy thinks they should invest in the stock market? For higher returns? These countries are looking for currency stability, not returns.

If they wanted higher "returns," they should put the money to work within their own economy, not our stock market.
__________________

__________________
wabmester is offline   Reply With Quote
Re: Summers to World: Quit buying US Treasuries, dummies!
Old 09-08-2006, 03:07 AM   #3
Thinks s/he gets paid by the post
ladelfina's Avatar
 
Join Date: Oct 2005
Posts: 2,713
Re: Summers to World: Quit buying US Treasuries, dummies!

wab, you are right! I just thought it was bemusing... Also, what (to Summers) is "the stock market"? The US stock market? Typical Harvard type. Pearls before swine.
__________________
ladelfina is offline   Reply With Quote
Re: Summers to World: Quit buying US Treasuries, dummies!
Old 09-08-2006, 09:55 AM   #4
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Re: Summers to World: Quit buying US Treasuries, dummies!

Quote:
Originally Posted by wab
But this guy thinks they should invest in the stock market?* * For higher returns?* *These countries are looking for currency stability, not returns.
He's just afraid that the world's women wouldn't be able to handle the math...
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 09:19 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.