RE: Fictional Government Accounting-Answer to James

[James <jamesk_51@hotmail.com>]

>From: Andre Dermant 

>>>>There is a vast difference between the Special Obligations owned by the SS Trust Fund and the so-called "paper assets" owned by 401(k) and IRA accounts.... 

In some cases maybe, in others, not.  You were the one to bemoan 'paper assests'.  I merely responded to that.  I do understand the difference between stocks and bonds, and corporate bonds, gov't bonds (like state and city bonds) and US Treasury securities.

Do you realize that many hold US Treasury securities in their IRA's and 401-K's?  And corporations like GM and IBM have them in their pension funds?  Go to a 'free market' securities trader, and ask him/her why the US Treasury pays less in interest (for equal maturities) than Ford does on its bonds.  They will explain that the US Treasury is safer in terms of payment of interest and return of principal IN THE VIEW OF THE FREE MARKET.  Feel free to conduct a quixotic crusade against the free market, if you wish!