Skip to main content

View Diary: Daily Kos Vilifies Minority Leader Pelosi for Accurately Describing a Bill Proposed in Congress (80 comments)

Comment Preferences

  •  If you owned a perpetual bond that paid a.... (5+ / 0-)

    ...9.00% interest rate, and the company which issued the bond subsequently modified the annual interest rate to 8.75%, the rating agencies would immediately declare that company in default, as the income stream of said bond has been cut.

    That's Chained-CPI, the brainchild of the Econ professor whose recommendation helped me get my first job on Wall Street.

    Learn about Centrist Economics, learn about Robert Rubin's Hamilton Project. www.hamiltonproject.org

    by PatriciaVa on Wed Dec 19, 2012 at 07:18:26 PM PST

    •  ??? (3+ / 0-)
      Recommended by:
      LeftOfYou, FG, billmosby

      Your bond gets no CPI, if you are taking the return as income the annual amount doesn't increase at all. I think you have an inherently flawed model.

      Chained CPI is still a fucked up idea, but that's because the "I" in "SSI" stands for insurance, not investment.

      A conservative is a man with two perfectly good legs who, however, has never learned how to walk forward. Franklin D. Roosevelt

      by notrouble on Wed Dec 19, 2012 at 07:29:39 PM PST

      [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site