Comments on: Great news - pension funds have lost money so they are better off http://www.johnredwoodsdiary.com/2007/06/14/great-news-pension-funds-have-lost-money-so-they-are-better-off/ Conservative Party Member of Parliament for Wokingham Wed, 19 Nov 2008 13:20:27 +0000 http://wordpress.org/?v=2.6.2 By: Steven_L http://www.johnredwoodsdiary.com/2007/06/14/great-news-pension-funds-have-lost-money-so-they-are-better-off/#comment-3388 Steven_L Fri, 15 Jun 2007 00:29:56 +0000 http://www.johnredwoodsdiary.com/?p=307#comment-3388 You've lost me (as usual). I understand that governmnent bonds are traded, and that they vary in terms regarding how they are paid back and at what interest rate. What you're saying is that they measure the pension fund deficit on what they believe will be there in the future (which makes sense as people retire then die in the future) and that in the UK they link this directly to UK interest rates? Nah, doesn't make sense to me. Mind you I can't help thinking that if Brown keeps borrowing at this rate, while running such a high trade deficit, UK bonds will end up worth nothing as whispers start that we can't actually pay them back without trashing our economy. Then again I didn't really understand this stuff about how the economical cycle had changed or something like that. Best leave it all to the guys that know how huh? Isn't that what they told pension fund investors 30 or 40 years ago? You’ve lost me (as usual). I understand that governmnent bonds are traded, and that they vary in terms regarding how they are paid back and at what interest rate. What you’re saying is that they measure the pension fund deficit on what they believe will be there in the future (which makes sense as people retire then die in the future) and that in the UK they link this directly to UK interest rates?

Nah, doesn’t make sense to me. Mind you I can’t help thinking that if Brown keeps borrowing at this rate, while running such a high trade deficit, UK bonds will end up worth nothing as whispers start that we can’t actually pay them back without trashing our economy. Then again I didn’t really understand this stuff about how the economical cycle had changed or something like that.

Best leave it all to the guys that know how huh? Isn’t that what they told pension fund investors 30 or 40 years ago?

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