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To: Hawkmoon who wrote (3014)	2/16/2001 12:54:05 AM
From: Don Lloyd	Read Replies (1) \| Respond to of 3536

Ron - ...I think the concept of taking a percentage of FICA tax payments (2-3%) and providing the payer the option of having them placed in an IRA is incredibly important to weaning this society off of depending on SS as a retirement program.... Have you thought this through? Does it really make any logical sense for a partial privatization? If you divert 2% of your payroll taxes to an IRA, presumably your benefits will be appropriately reduced. How does this benefit the overall solvency of the SS system? The system loses the current payments in exchange for the reduction in future liabilities. The only way the system can benefit is by stealing your presumably higher returns at the other end. If it does so, why would you choose to participate? You get to risk lower returns without a possible reward because you don't get to keep the possibly higher returns. A total privatization doesn't suffer from this problem. What am I missing? Regards, Don

To: Hawkmoon who wrote (3014)	2/16/2001 9:17:22 AM
From: Zeev Hed	Read Replies (2) \| Respond to of 3536

I think this proposal is is fiscally irresponsible. Some people will chose rightly, and always increase stock (S&P, for instance) allocation at bottoms, others will at tops, guess who will allocate larger proportions at the top? Those people that finally at the end of bull moves get persuaded by wall street to take their (WS) inventory off their hand. Wall Street is simply trying another way to fleece those potential investors it has not yet fleeced with a temptation song "stock in the long run....", but they forget to tell you what are these long runs. For instance between 1966 to 1982, if you invested in the Dow Jones, you would have lost over those 16 years, 50% of your money, since you would have been seduced in at the 1966 top above 1000 and finally thrown in the towel at the August bottom of 1982. There many other reasons why that is a very stupid proposition, invest excess SS in government backed issue (and that is one reason we should not "pay off" all the debt). Zeev