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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (215311)	1/18/2005 3:20:09 PM
From: tejek	Read Replies (2) \| Respond to of 1573927

Interesting article on the stock market impact of money flows from social security moving into the stock market: yahoo.smartmoney.com I say "home" because stocks are the natural place to invest for people with very long time frames — such as people investing for their retirement. Right now all that Social Security retirement money is invested in intermediate-term Treasury bonds, and any financial planner would tell you that's just plain bad asset allocation.... Today, polls consistently show that most younger Americans don't believe they will ever get their Social Security benefits when they retire. For them, all those taxes are perceived as just a deadweight loss. With personal accounts, workers know they will get something out of Social Security when they retire — because they can see their account growing every day. And it's their account — their property. Who convinced "younger Americans" that they won't get their SS benefits? The same guy who brought you WMDs in Iraq. Need I say anymore. ted

To: RetiredNow who wrote (215311)	1/18/2005 3:24:38 PM
From: neolib	Read Replies (1) \| Respond to of 1573927

What can we expect will happen to stock prices if all this new money starts coming into the market? One thing we know for sure, all this new money to spend on stocks sure isn't going to make the market go down. As far as I'm concerned the only question is, how much will it make the market go up? I stated more or less this way back, and you assured me the inflow was to small to impact the market. Which is it? I will state this once again. The biggest impact of private accounts, if allowed to invest in stocks, is to prop up the markets over the next several decades while boomers retire and start sucking out equity. Private accounts are important to keep the equity ponzi scheme going nicely.