Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (86158)	12/1/2000 9:07:48 AM
From: Tommaso	Read Replies (2) \| Respond to of 132070

This time around, bankruptcy has become almost respectable (unless you would like to get a mortgage or buy a car on credit any time for the rest of your life). I think the banks have done a great deal to cause the situation and should bear the consequences. But let's imagine what could happen. Hundreds of banks go into receivership. The FDIC has its hands full. Depositors must be given their money. Where does the money come from? The government prints it. The Fed won't let the whole system fail. There is a huge increase in liquidity. Inflation edges up to 20% a year for several years. Where does one want to be in such a case? Best choice might be US infllation-adjusted bonds. Incidentally, I was astonished to find that the portion of my wife's retirement fund that is inflation-adjusted bonds grew by 10% in the two months following September 30 this year. Does this mean that even inflation-adjusted bonds have an interest-rate risk? Do you understand these securities?