James,
That link comes up "not found".
Surely they're not talking a total commitment to stocks. Whatever commitment they do come up with would be phased in over at least several years. The market will very likely be toast well before the first dollar is committed. My questions are: what percentage, who controls it, and domestic vs. foreign exposure, if any (there should be some).
I, as much as anybody, see the Soc Sec System as a huge, unsustainable ponzi scheme, eclipsed only by the current US stock markets in magnitude and subterfuge. They can either collapse separately or together. I vote for separately! Actually, the SSS almost has a chance of struggling along, albeit with reduced benefits and delayed retirements. A stock "kicker" would be nice, but stupid at these levels. It is one thing to have SSS money in the US gov bond market and backed by the taxing authority of the US gov. The stock market has no such backing. And what happens when a generation of retirees needs to be supported, yet the market happens to be trading at protracted lows. Buy high, sell low, that's what.
Right now, rapidly throwing massive SSS money into the stock market will kill it (SSS) off, or severely weaken it at the very least. The likely result of which will be sudden, large increases in payroll taxes. There will be hell to pay if this is not done with a sensible balance and with the proper timing.
If anything, they should be talking about putting those dollars into the severely undervalued COMMODITIES markets. 'Course, we won't hear that kind of talk until gold is trading at $2000/oz and oil is $100/barrel. Don't you just love it! :o) |
