Felix Salmon reports:
Bullard’s a career central banker who has never had a lucrative private-sector career, but he’s still doing OK for himself: his annual salary is $281,300, which should be more than enough to bring up a family of four in St Louis.
Here’s the thing, though: Bullard’s disclosure form is completely blank. Which means that, except for his house and his Federal Reserve retirement benefits, he has no investments at all worth more than $1,000 — not even a savings account. Or, to put it another way, the president of the St Louis Fed, earning well over a quarter of a million dollars a year, is living paycheck-to-paycheck. Every two weeks, he gets paid $10,819, less taxes and deductions, and yet by the end of the year he still doesn’t have even $1,000 in a checking account.
As well, he should.
Will Bullard be laid-off: Ha!
Is there a private label investment vehicle more secure than his Fed retirement benefits: Double-Ha!
The only question is whether he has disability insurance – which would be wise even in his case.
Otherwise, wherefore savings?
Savings are just a promise from one human to another. All promises can be broken. Bullard has a set of promises – explicit and implicit – from the folks who actually own the printing presses. Those are the kind of promises you want.

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Tuesday ~ February 7th, 2012 at 6:14 pm
Curt Doolittle
Theory is nice. In practice, having an overseas account with a few million in it is far more than ‘savings’. It’s risk mitigation. It’s an infinity of choices.
Once you have 50K in savings, the world is an easier place to live in.
Once you have 200K it’s a much easier place to live in because you really can’t experience any significant threat.
Once you have 2M, you’re able to do what you prefer to and don’t have to really ‘save’ any longer.
Once you have 5M, as long as you don’t spend for entertainment or collection, you”re out of the market. And people don’t want to play int he market. That’s why so few of them do.
All farmers are entrepreneurs. Very few people in an advanced economy are entrepreneurs. They choose wage earning or rent seeking instead.
Everyone wants to be a consumer, and very few want to be entrepreneurs. It’s hard.
Tuesday ~ February 7th, 2012 at 6:27 pm
Andy Harless
Does he have a mortgage? Even for someone with a little bit less secure future than a Federal Reserve Bank president, the risk-averse (and sensible) way to invest, if you have a mortgage, is to devote all your savings to paying down the mortgage before you devote any to other investments. (Why should you be taking a levered position in your other investments?) And having a mortgage surely wouldn’t make him any more “broke” than the typical American.
Tuesday ~ February 7th, 2012 at 6:54 pm
Lord
I wonder if he comes from a wealthy family and is anticipating a future windfall.
Tuesday ~ February 7th, 2012 at 8:46 pm
q
i think there is a similar story about sonia sotomayor’s finances. job for life, disability benefits, why would she need to save money?
Tuesday ~ February 7th, 2012 at 9:11 pm
Don Gibson
Maybe he plans to live off residuals from his music?
http://www.myspace.com/jamesbullard
More seriously, can’t these guys count on a lucrative consulting gig? I assume he never has to pay a restaurant check again.
With this quote, I think he has a secret gold stash: “optimal way to deliver on the dual mandate is to pursue low and stable inflation, which in turn helps the real economy. In other words, monetary policy can achieve the same desired outcomes with a single mandate as it can with an appropriately interpreted dual mandate.” [http://www.stlouisfed.org/publications/ar/2010/pages/ar10_1.cfm]
Wednesday ~ February 8th, 2012 at 7:16 am
MP
Well, not entirely. He should probably still keep more than $1000 around for liquidity. And he probably does. Salmon almost certainly got this wrong, as his commenters pointed out.
But yeah, a defined benefit plan from the Fed would be nice to have.
Wednesday ~ February 8th, 2012 at 1:23 pm
jamesoswald
There’s no way that is accurate. At that level of income, a single paycheck would be around $6,000. He’d have to get paid and immediately run out and buy a bunch of stuff at the end of the year. He’s got to have some offshore account somewhere.
Wednesday ~ February 8th, 2012 at 1:28 pm
jamesoswald
From Felix Salmon’s comments: “Personal account” is defined at p. 335 as checking, savings, CDs, and money market funds.”
So, he could actually have quite a bit in a savings account and still leave it blank.
Thursday ~ February 9th, 2012 at 10:01 am
Benny Lava
Not sure if serious…
Thursday ~ February 9th, 2012 at 3:36 pm
How large is the output gap really? — Marginal Revolution
[...] Here are some interesting observations about Bullard. [...]
Saturday ~ February 25th, 2012 at 11:40 am
Article: Bullard: Smarter Than You Think « Modeled Behavior « squarelyrooted
[...] Smarter Than You Think « Modeled Behavior http://modeledbehavior.com/2012/02/07/bullard-smarter-than-you-think/ Savings are just a promise from one human to another. All promises can be broken. Bullard has a set [...]