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To: Don Lloyd who wrote (114197)	7/24/2001 12:52:39 PM
From: Ken98	Read Replies (1) \| Respond to of 436258

Don, the text should be published in the next day or two. I'll try and post it. Surely, the quote is taken out of context. If not, I'm simply amazed. In the meantime: dallasnews.com Regards, Ken

To: Don Lloyd who wrote (114197)	7/24/2001 4:31:37 PM
From: Mark Adams	Respond to of 436258

He was prompted by repeating the question to say the treasuries were 'real'. But what was really interesting was his first reply. He explained that regardless of what form of paper the treasury trust held, the important thing was that enough capital stock be created during the next decade to service both the retirees and then workforce demand. My take; If we have the productive capacity to meet the demands of the population, regardless of how the SS needs are met, it will not drive demand push inflation. He almost got on a tangent regarding the long term returns of other investment options, which sounded like it would have been interesting. I think he would have said that while recent results in equities may have outpaced the administratively set interest rates on the govt IOU's held by the trust, 'future results may differ from past returns'. But the congressman wanted to refute the notion that the trust fund held essentially worthless paper- rather than understand the deeper message Greenspan provided. Hence repeating the question. Another thing he said was that they have figures that show that while home equity has been tapped by home owners, the rate of appreciation continues to out strip the removal of equity. Hence, at this time home owners equity doesn't behave like a depleting asset.

To: Don Lloyd who wrote (114197)	7/24/2001 4:33:14 PM
From: KyrosL	Read Replies (2) \| Respond to of 436258

Don, I thought the SS trust fund holds Treasury IOUs, and those are equivalent to the publicly owned US Treasury securities. So, I don't understand the contention that these assets are not real. If the government defaults on the SS IOUs, it will simultaneously default on the publicly owned Treasury IOUs. In that sense, SS trust fund assets are much less risky than a basket of stocks, corporate bonds and real estate.