--- Erik Reuter <[EMAIL PROTECTED]> wrote: > On Mon, Apr 05, 2004 at 08:14:37AM -0500, Dan > Minette wrote: > > > Actually, its government bonds right now. On > paper, the SS trust fund > > includes the money it makes from the interest > accumulated from the > > government bonds it has invested in. > > All of it? I've never seen a clear explanation for > how they account for > government borrowing from the SS trust fund.
Not 100% certain, but I believe Dan is exactly right. The trust fund is required, by law, to buy US Government bonds with its surplus revenues. This does make sense, actually. US Government Bonds are considered the only "riskless assets" in the financial world - every other security is priced against them for that reason. Even the bonds of other major countries are not accorded that degree of respect by financial markets. If one of Social Security's primary goals is to minimize retirement risk, it sort of makes sense for them to invest in the world's safest asset. ===== Gautam Mukunda [EMAIL PROTECTED] "Freedom is not free" http://www.mukunda.blogspot.com __________________________________ Do you Yahoo!? Yahoo! Small Business $15K Web Design Giveaway http://promotions.yahoo.com/design_giveaway/ _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
