401Ks are exact reason why to not mess with Social Security.

[C......N......C]

Can you imagine what if they had privatized SS as so many GOP's wanted and want to do.

[MindPilot]

1. Many of the younger folks don't remember when workers got pensions

It was a guaranteed return, but those were raided to hand the money to "the market". Now workers have the dubious privilege of "investing" for retirement. Everyone has to be a fund manager whether you want to or not.

[susanna]

2. My own pet theory (based on no real information, just observation)...

was that they wanted to privatize SS a few years back to prop up the bubble. In retrospect, it doesn't seem that far-fetched. Which would also imply that they knew we were headed off a cliff back then.

And I agree with your assessment. Anyone who willfully disregards what would have happened to SS has not only drunk the Kool-Aid, they could be dried and ground up to make more.

[Nicholas D Wolfwood]

4. Yeah, that came to mind for me, as well.

I'm not so sure the Repubs were really that smart, however. I wouldn't put it past them though, that's for sure.

[susanna]

8. Good points! n/t

[nashville_brook]

11. "not only drunk the Kool-Aid, they could be dried and ground up to make more."

nice!

[susanna]

12. Thanks! Glad you enjoyed it. :-) n/t

[Nicholas D Wolfwood]

3. Oh god, we'd all be a lot more fucked than we already are.

Granted, SS isn't doing much even for today's seniors, but it's at least something.

And don't forget about the blue-hairs that would've trusted Bernie Madoff with that money, too.

[soothsayer]

5. Yes, and their ambition to do that proves that they KNEW this crisis was coming.

They have been trying to figure a way to get that big pot of our money to shore up their vast ponzi scheme of derivatives and hedge funds. Turns out they could just up and TAKE all the money they want from us right before our very eyes.

Getting rid of pensions and driving everyone into 401(k)s was the first step of getting their hands on our money. Now they don't even have to resort to such trickery.

[notesdev]

6. A bit too little, too late

SS reserves are all US Treasury bonds, the same that the government plans to flood the market with and crash the price. And on the other end, the CPI manipulation in order to keep COLA down should be fairly evident as well.

[C......N......C]

7. Is Geithner jeopardizing SS

[notesdev]

9. Geithner and Bernanke together

They're on a beeline towards a massive devaluation of the US dollar. We saw a preview of what is to come with the Fed's $1.2T injections of funds, which resulted in a 2.5% drop in the value of the dollar. And now the ability of the government to borrow money is at risk - our bond auction this week nearly failed.

What is going to happen to SS when it goes negative in just a few years, and the government can't borrow to replenish the funds it had the duty to hold in trust but instead exchanged for the very debt they are on a path to devalue?

People are going to be royally pissed when they realize how every source of savings has been plundered by the insane greed and voracious appetites of their legislators.

[melm00se]

10. pensions

does anyone know where pension funds were invested?

they were (and still are), at least partially, invested in the equity markets.

Pension money for future payments doesn't just magically appear out of no where. the nest egg needs to grow to cover future payments.

[OHdem10]

13. Privatization of SS is very much alive -- please watch the Conservatives

in our own Party.