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Old 10-04-2011, 06:25 PM   #41
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We can cure this pension problem immediately.

Just fire all private sector workers, and then have the governemnt rehire everyone with federal or state pay scales and retirement provisions.

Voilá- problem solved. Also, with the higher government pay scale there should be better income tax collections, and with thoughtful early retirement provisions of government work we should cut down on unemployment and open up jobs for more young people and minorities.

Ha
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Old 10-04-2011, 09:22 PM   #42
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My dad retired in 1979. He had $100,000.00 in bank Cd's yielding about 15%. With his SS and those high rates on Cd's he lived pretty good. I think those days are gone and us mid 60 people will never see anything like that in our life. The storm is just starting to brew.
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Old 10-05-2011, 11:34 AM   #43
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Originally Posted by oldtrig View Post
My dad retired in 1979. He had $100,000.00 in bank Cd's yielding about 15%. With his SS and those high rates on Cd's he lived pretty good. I think those days are gone and us mid 60 people will never see anything like that in our life. The storm is just starting to brew.
Those 15% rates were there because a storm had already hit. And because Paul Volcker was a realist who wanted to put the country back on a solid footing.

In 1979 inflation was still boiling, but after a few years as disinflation took hold under Volcker, anyone who bought long term treasuries at those high rates was set for a very nice retirement.

Many people did not see these long term treasuries as gifts from heaven, they thought that inflation would continue up forever. They wanted gold, T-bills, famland etc.

Ha
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Old 10-05-2011, 12:00 PM   #44
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Quote:
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Those 15% rates were there because a storm had already hit. And because Paul Volcker was a realist who wanted to put the country back on a solid footing.

In 1979 inflation was still boiling, but after a few years as disinflation took hold under Volcker, anyone who bought long term treasuries at those high rates was set for a very nice retirement.

Many people did not see these long term treasuries as gifts from heaven, they thought that inflation would continue up forever. They wanted gold, T-bills, famland etc.

Ha
That's what I'm waiting for again. I got my first start as a financial wizard investing in 17% CDs, while only paying 15.75% on my mortgage. This time I'm going to be ready for them. I'll load up on T-bills and CDs when we get interest rates in the teens, and I'll be holding my ~4% (depending on the next refi) mortgage. Then I'll tuck in and quit buying stuff, live on my dehydrated food and dry beans until the economy recovers, and live happily ever after! I love it when a plan comes together! What could go wrong?
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