http://blogs.reuters.com/rolfe-winkler/2009/11/23/lunchtime-links-11-23/ Option ARMageddon Thu, 09 Aug 2012 01:58:02 +0000 hourly 1 http://wordpress.org/?v=3.4.2 http://blogs.reuters.com/rolfe-winkler/2009/11/23/lunchtime-links-11-23/comment-page-1/#comment-3685 Dan Mon, 23 Nov 2009 21:39:20 +0000 http://blogs.reuters.com/rolfe-winkler/?p=4426#comment-3685 Trying to parse Bill Gross's apparent schizophrenia...He wants asset prices propped up at present with a concrete plan of fiscal austerity upon exit maybe?El Erian talks of the need for exit strategy (presumably involving fiscal prudence) to make present levering up more palatible.The problem with this is that congress will never willingly cut entitlement spending on the elderly, which is the bulk of it. They are owned by the AARP even more than big business.We risk calcifying like Europe or Japan, where the young exist as indentured servants to the old, GDP has stagnated for 30 years and consequent low birthrates put national solvency at risk. Trying to parse Bill Gross’s apparent schizophrenia…He wants asset prices propped up at present with a concrete plan of fiscal austerity upon exit maybe?El Erian talks of the need for exit strategy (presumably involving fiscal prudence) to make present levering up more palatible.The problem with this is that congress will never willingly cut entitlement spending on the elderly, which is the bulk of it. They are owned by the AARP even more than big business.We risk calcifying like Europe or Japan, where the young exist as indentured servants to the old, GDP has stagnated for 30 years and consequent low birthrates put national solvency at risk.

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