The Federal Reserve - silently robbing you of your purchasing power ever since 1913...
RETWEET if you agree. 
pic.twitter.com/DoXw2fmKGt
-
This Tweet is unavailable
-
no, i’m not. you attended the talk in which that slide was given, you know that valuation risk was not ignored, but was much discussed in that talk. the slide to which you now object addresses a particular historical claim, tgat the USD has been a poor value store. It has not,
But "no credit risk" usually is not discussed in such a context, it is just used dishonestly as it was in the above use of this lide. And in any context it is an extremely confusing way to artificially constrain the definition of "credit risk."
-
-
what you call “dishonesty” is just use of a conventional definition you’d prefer be different. would you object less if the word “default risk” were used instead of “credit risk”? or would you object because inflation can be claimed in a substantive sense to be default? i’d agree
-
That's not how people use the term "credit risk" in other contexts besides the propaganda context of the bonds of one's favorite government(s). For example, analogous situation, if a homeowner damages the home, used as collateral for mortgage, that's a credit risk.
-
People in the private credit business don't make up separate artificial categories of risk and then claim their debt carries no credit risk. Only government bond propagandists do that.
-
the holder of a private mortgage’s credit risk is the risk of nonrepayment. loss of housing value affects credit risk because it affects the probability of nontrpayment. people underwater on their mortgages are much less likey to repay tha people who would lose home equity in a
-
default. that is why home values affect mortgage credit risk!
-
There's a very good term for your narrower meaning, "default risk". There is no need to use two terms to mean the same thing & thereby mislead readers into ignoring very important risks involved in credit, which is what normal think when they hear the term "credit risks."
End of conversation
New conversation -
-
-
Indeed, inflation risk, even when attempts are made to hedge it with e.g. an index, comes with the risk that inflation will be measured inaccurately. Such measurement faces fundamental problems such as the subjectivity of preferences.
-
Tweet unavailable
-
The reason is propaganda: to mislead people into ignoring the high risks involved in government debt.
- 5 more replies
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.