Vincent Reinhart, Chief US Economist for Morgan Stanley and former director of Monetary Affairs for the Federal Reserve, spoke at the Buttonwood Gathering this morning alongside other financial gurus.The topic — the consequences of debt — inspired Reinhart to offer his opinion on the most overvalued asset in America.
From Greg Ip, Economics editor for the Economist:
The quote alone is a bit ambiguous. It could imply the he doesn’t expect that taxpayers will receive their Medicare, Medicaid, or Social Security benefits in full as a result of cuts. Or it could mean that they’re underestimating the impact of inflation or other factors that could lower the future value of these entitlements.
Whatever the case, this political hot-button issue, could potentially prove disastrous for an ageing population that is both living longer and spending more on health care.