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Peter (Yes, that one)

In article ,
says...

On Sun, 18 Apr 2010 13:29:35 -0500, "Peter (Yes, that one)"
wrote:

I think much of it is a matter of timing, and those who entered in more
recently got "screwed." Does Ponzi come to mind here?

I just got beat up for saying that.

When the boomers start cashing out it will be apparent to everyone
that most of what we think was a sound investment was crap, especially
the biggest ponzi of all, social security.

Do all of these rosy deficit projections take into account that SS is
upside down already, 4-6 years ahead of schedule (depending on which
projection you believed).
That fat surplus every president since LBJ used to balance the budget
is gone and we are putting general fund money into the social security
bucket now.

Well, SS does not at all fit the Ponzi model.
You actually know the accounting of it, and it was never an investment,
but a requirement.
The accounting of nothing, and I mean nothing, on Wall Street can be
looked upon with anything but skepticism.
And SS is not "upside down" or in "deficit" technically.
Good, honest accounting proves that.
That is why you know exactly what is in the trust fund, and are able
to make actual projections with it.
That the trust fund is now being tapped is due to the horrible economy
created by Wall Street and political malfeasance.
That political malfeasance was in allowing Wall Street to run wild, and
not addressing SS funding sooner.
But SS will be fixed soon enough by recovery of the economy, and changes
possibly increasing retirement age and most certainly contributions, as
was done back in the early 80's.
I suspect that the earning caps will be taken off, and perhaps means
testing instituted for benefits.
A lesser possibility is the payroll tax rate will be increased.
But any combination of those changes will easily push the solvency
projections ahead by decades.
Long after all the boomers are dead and not collecting.
Of course a robust economy is essential.
But the boomers dying off will be a great boon to the country's economy.
It is their demise that will help SS most.
Not being morbid here, just realistic.
In the larger scheme of things, actuarial tables don't lie.
And the SS administration knows them well.
"Despite our earthly pretensions, in the end we are mere statistics."
One of my customers, who was a statistician by profession, and a very
gentle and humble man who preferred inexpensive casuals said that to me
once, and it has stuck. He is gone now, and though my remembering his
words might seem to belie their meaning, I too will pass on, proving him
ultimately right.

Peter