Hooray for Social Security Reform!
Posted by: Phil Barry on 27 December 2004
The Bush administration continues its moral quest to support the rich and screw the middle class.
It's Social Sceurity 'reform' will virtually force Americans to invest money in stocks and bonds that would otherwise go into the current Social Security 'safety net' - small though it is. In doing so, Bush will massively increase the fees paid to his buddies in the the so-called 'financial services' industry.
What's more, he will make immensely more money available to his buddies, like Kenny Boy Lay, the con-men and scammers. Interesting that 65,000 Brits are known to have lost their retirement funds....Given the relative poplulations of the US and GB, given the time that the schemes ran in GB, let's see...how much money will be stolen from US savers?
But the principle that really makes me sit up and take notice is this: one is generally counseled not to buy what the smart money is selling.
We know that US demographics will change as the boomers enter retirement; we know that urrent stockholders will have to sell their stocks so that the boomers with assets (private or pension) can pay their bills, so the supply of stocks available for purchase will increase; we know that theory and much experience state that prices go down when supply goes up and/or demand goes down.
We also know that ownership in the US is highly concentrated and that the rich are getting far richer in relation to the poor and the middle class; that is, concentratioon is increasing.
So the effect of the 'reform', it seems to me, will be to transfer stocks from the rich to the middle class just as the value of the stocks starts to go down, giving another Bush windfall to the rich and again screwing the middle class.
Brilliant!
Regards.
Phil
It's Social Sceurity 'reform' will virtually force Americans to invest money in stocks and bonds that would otherwise go into the current Social Security 'safety net' - small though it is. In doing so, Bush will massively increase the fees paid to his buddies in the the so-called 'financial services' industry.
What's more, he will make immensely more money available to his buddies, like Kenny Boy Lay, the con-men and scammers. Interesting that 65,000 Brits are known to have lost their retirement funds....Given the relative poplulations of the US and GB, given the time that the schemes ran in GB, let's see...how much money will be stolen from US savers?
But the principle that really makes me sit up and take notice is this: one is generally counseled not to buy what the smart money is selling.
We know that US demographics will change as the boomers enter retirement; we know that urrent stockholders will have to sell their stocks so that the boomers with assets (private or pension) can pay their bills, so the supply of stocks available for purchase will increase; we know that theory and much experience state that prices go down when supply goes up and/or demand goes down.
We also know that ownership in the US is highly concentrated and that the rich are getting far richer in relation to the poor and the middle class; that is, concentratioon is increasing.
So the effect of the 'reform', it seems to me, will be to transfer stocks from the rich to the middle class just as the value of the stocks starts to go down, giving another Bush windfall to the rich and again screwing the middle class.
Brilliant!
Regards.
Phil