Social Security tipping over into the red

posted at 1:28 pm on February 4, 2010 by Ed Morrissey

Last month, we noted that Social Security had delivered its worst performance in decades.  Now, Allen Sloan warns investors at Yahoo Finance that the entire program has gone into the red — and will stay there.  Get ready, Sloan says, for the mother of all bailouts:

Don’t look now. But even as the bank bailout is winding down, another huge bailout is starting, this time for the Social Security system.

A report from the Congressional Budget Office shows that for the first time in 25 years, Social Security is taking in less in taxes than it is spending on benefits.

Instead of helping to finance the rest of the government, as it has done for decades, our nation’s biggest social program needs help from the Treasury to keep benefit checks from bouncing — in other words, a taxpayer bailout.

The only event that might keep this from being the very next bailout would be a faster-than-expected collapse at FHA, which has followed the Fannie Mae/Freddie Mac strategy of buying marginal paper and securitizing it through MBSs.  Otherwise, we’re already beginning to bail out SSA, thanks to a generation-long bailout of the federal government by the SSA in the other direction.

Technically, the fund should receive $120 billion in interest payments from the Treasury, which owes SSA for decades of skim repaid only in IOUs.  However, the interest itself will only be paid in IOUs.  Sloan explains the problem:

The first number is $120 billion, the interest that Social Security will earn on its trust fund in fiscal 2010 (see page 74 of the CBO report). The second is $92 billion, the overall Social Security surplus for fiscal 2010 (see page 116).

This means that without the interest income, Social Security will be $28 billion in the hole this fiscal year, which ends Sept. 30.

Why disregard the interest? Because as people like me have said repeatedly over the years, the interest, which consists of Treasury IOUs that the Social Security trust fund gets on its holdings of government securities, doesn’t provide Social Security with any cash that it can use to pay its bills. The interest is merely an accounting entry with no economic significance.

Just to make clear, that $92 billion surplus includes the nonexistent interest payments from Treasury.  The fund will go into the red for $28 billion, meaning that we will have our first cash-negative year ever in SSA.  It won’t be the last, either.

The crisis in SocSec was supposed to arrive in 2019, according to the CBO in 2008.  Who came up with that figure?  Peter Orszag, the same man who missed the 10-year deficit projection by over $2.2 trillion in the spring of 2009, and who now runs the Office of Management and Budget.  Democrats used that figure, as well as others produced by various sources in the years preceding that analysis, to argue against Social Security reform, and to paint Republicans who warned that the crisis was a lot closer as Chicken Littles or grubby politicians who just wanted to get their hands on Grandma’s Social Security check.

Steve at No Runny Eggs looks at the recalculated projections:

Between this fiscal year and FY2019, instead of a cumulative Social Security primary deficit of $100 billion, we’ll have a cumulative Social Security primary deficit of $157 billion. That is, of course, we actually do get all the economic and tax growth that the CBO seems to hope we will. If we don’t, the chart I put together back in September showing just how easy it was to turn the CBO’s hope into red ink as far as the eye can see will be rosy.

That also doesn’t include Obama’s plan for a second round of $250 checks to every Social Security recipient. That is a drag of another $13 billion on this year, which would make this year’s cash deficit somewhere around $51 billion.

This means that the federal government not only can’t rely on SocSec surpluses, which have been used to paper over budget deficits, it will have to increase the federal deficit to make benefit payments from now on.  George Bush and the GOP saw this coming, while Democrats like Orszag insisted that we had nothing to worry about.  Even if we had a federal government living within its means, this would be a crisis — but with the debt that Obama is accumulating, it’s a fiscal tsunami waiting to crest.


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We are 10 feet from the edge of the cliff and the vehicle has no brakes!!!

Robbya on February 4, 2010 at 1:31 PM

So much for that lock box.

Fletch54 on February 4, 2010 at 1:32 PM

That Bush was such an idiot for trying to tackle this problem 5 years ago. /sarc off

WashJeff on February 4, 2010 at 1:33 PM

I truly fear for the future of this country. Not because of a bunch of moronic mujahids running around with turban bombs. Not because of “peak oil,” or “global warming.”

We’re spending the life out of this nation. We are engaging in the most absurd, unsustainable monetary practices ever seen.

You want to know the State of the Union?

It’s as flimsy as a house of cards.

blatantblue on February 4, 2010 at 1:33 PM

Sure glad that the donks stopped SS reform in 2005.

BTW, it’s going to be an order of magnitude worse in 2010.

jukin on February 4, 2010 at 1:34 PM

The fund would have even less money if they allowed me to keep the money I EFFING EARN instead of giving it to the government for SS taxes.

Jaysus, what a mess and we have Pigpen as president.

Bishop on February 4, 2010 at 1:35 PM

So the Treasury is going to being paying the interest in IOU’s and Zero is going to bailout SSA using tax payer dollars, that already takes in tax payer dollars isn’t this double taxation and illegal. I know we are talking Washington DC and illegal it doesn’t matter.

If I called up my USAA and told them I’m going to pay the interest from my car loan with IOU’s they’d probably come take my car.

I can’t believe our government is doing this to us. Wonder how many trillions this is going to cost us.

Brat4life on February 4, 2010 at 1:35 PM

Unexpected to some, but regular readers here knew this long ago.

Vashta.Nerada on February 4, 2010 at 1:35 PM

Nothing about how the Treasury Dept. wants to steal our retirement plans to “shore up” this Ponzi scheme in the short term?

Roth IRAs will be next. They will tax those earnings eventually.

You can run but you cannot hide from the IRS.

NoLeftTurn on February 4, 2010 at 1:36 PM

So long America! Anyone else want to regroup in Colombia?

abobo on February 4, 2010 at 1:36 PM

That is a drag of another $13 billion on this year, which would make this year’s cash deficit somewhere around $51 billion.

Should this be $41 billion ($28 billion + $13 billion)?

WashJeff on February 4, 2010 at 1:37 PM

I know the solution to this depression in Social Security cash. The only way out of a depression is to spend more money! That way we’ll stimulate the Social Security economy and reduce it’s debt level at the same time.

It is a brilliant plan. Every economist from the left and the right agree.

/Obama, Biden, or any other democrat

Mich_93 on February 4, 2010 at 1:37 PM

I can see it now – another “inherited” problem.

Unexpected!!

tommer74 on February 4, 2010 at 1:37 PM

That Bush was such an idiot for trying to tackle this problem 5 years ago. /sarc off

WashJeff on February 4, 2010 at 1:33 PM

He’ll still attempt to blame Bush.

Doughboy on February 4, 2010 at 1:38 PM

Watch out, there is a good chance that Obama will nationalize/steal from your 401K and IRA saving.

jdun on February 4, 2010 at 1:38 PM

Social security was doomed from the start because it was designed to pay for today’s retirees with the money from today’s workers. Any money that is coming out of your check for SS & FICA isn’t being saved for you, it’s going to your parents. Your money will come from the paychecks of your children. We’re at the point that we have more retirees than workers and thus the system is bankrupt.

mizflame98 on February 4, 2010 at 1:38 PM

You can run but you cannot hide from the IRS.

NoLeftTurn on February 4, 2010 at 1:36 PM

And now the IRS agents have shotguns!

WashJeff on February 4, 2010 at 1:38 PM

How many are unemployed and are not funding Social Security? That number has to got to be huge.

Knucklehead on February 4, 2010 at 1:39 PM

Here is a friendly financial tip from Burt Ives.

WashJeff on February 4, 2010 at 1:40 PM

If they pass Obamacare, this will take care of the problem bcs we can just let seniors die who are drawing SS.
Mysteriously, they will have to wait for vital health care services.
This will save millions.
Thus, the baby boomer generation will be dealt with.

Badger40 on February 4, 2010 at 1:40 PM

Just print more money!

Geeesssshhh…

You guys are so stupid!

Seven Percent Solution on February 4, 2010 at 1:40 PM

A report from the Congressional Budget Office shows that for the first time in 25 years, Social Security is taking in less in taxes than it is spending on benefits.

And when did the first Baby Boomer apply for S

newton on February 4, 2010 at 1:40 PM

WashJeff on February 4, 2010 at 1:38 PM

Betcha I can use mine better than they can use theirs!

gator70 on February 4, 2010 at 1:41 PM

jdun,
I fully expect this bho and team are at this minute looking at ways to get to the estimated 3 trillion in retirement funds. They tried to do that during the bc term, but it didn’t fly. Just keep looking for any news on this issue!
L

letget on February 4, 2010 at 1:42 PM

W knew what to do…

Social Security is unexpectedly tipping over into the red

cmsinaz on February 4, 2010 at 1:42 PM

And when did the first Baby Boomer apply for S

newton on February 4, 2010 at 1:40 PM

Wasn’t it Jan 1. of last year, I know they had a huge to do about signing her papers. She was proud to be the first of the BB to sign up for Social Security.

Brat4life on February 4, 2010 at 1:42 PM

Didn’t Bush try to fix SS and the Democrats stopped it?

daesleeper on February 4, 2010 at 1:43 PM

A report from the Congressional Budget Office shows that for the first time in 25 years, Social Security is taking in less in taxes than it is spending on benefits.

And when did the first Baby Boomer apply for SS benefits? On 2008. It was announced with much fanfare at the SS Administration!

Just wait until 2011 comes!

Tick-tock, tick-tock…

(The first time I tried to write this, something went wrong and my unfinished comment was published. Dang! :-(

newton on February 4, 2010 at 1:43 PM

Betcha I can use mine better than they can use theirs!

gator70 on February 4, 2010 at 1:41 PM

Probably so. I wonder if teh IRS is the Civilian defense force Obama talked about during the campaign.

WashJeff on February 4, 2010 at 1:43 PM

You can run but you cannot hide from the IRS.

NoLeftTurn on February 4, 2010 at 1:36 PM

And now the IRS agents have shotguns!

WashJeff on February 4, 2010 at 1:38 PM

They’ll wait until next year to pull the trigger. There’s no estate tax this year.

zmdavid on February 4, 2010 at 1:43 PM

How many are drawing SS that never paid into the system? That’s a good question.

This is all just proof that governmental social programs always fail regardless of the intentions.

gator70 on February 4, 2010 at 1:43 PM

Didn’t Bush try to fix SS and the Democrats stopped it?

daesleeper on February 4, 2010 at 1:43 PM

Like Fannie & freddie, why fix what is not broken.

WashJeff on February 4, 2010 at 1:44 PM

I will willingly give up my rights to Social Security (based on what I’ve already been paying in for years), in exchange for letting me keep my money from here on out.

Somewhere, sometime, some politician is going to (inevitably) sacrific his or her career and make sweeping Social Security reform, resulting in drastic, drastic cuts to beneficiaries. It won’t be pretty, but it will be necessary.

We know it won’t be Obama (and the problem’s not his fault). So maybe the next President. Sigh. I’m sad for our children.

Abby Adams on February 4, 2010 at 1:44 PM

So long America! Anyone else want to regroup in Colombia?

abobo on February 4, 2010 at 1:36 PM

Texas~we’ll boot the illegals and there will be room for all our conservative selves. I’ll bring the torches and margaritas!

Like medicaid and medicare, ss probably has a bunch of cheats~let’s start there.

HornetSting on February 4, 2010 at 1:46 PM

gator70 on February 4, 2010 at 1:43 PM

I would say the majority of those people have already moved on to the next world.

Low income earners technical always pay into the system, but given earned income tax credits, their overall tax burden is negative. With taht said, probably around 15% to 20% of the population.

WashJeff on February 4, 2010 at 1:47 PM

Why do the democrats want to do sex to me?

daesleeper on February 4, 2010 at 1:47 PM

If the problem is too many oldsters drawing Social Security benefits, then the solution is obvious. ObamaCare, now!

Cicero43 on February 4, 2010 at 1:47 PM

I didn’t start getting into politics until the last election, I hated talking politics actually.

Was Bush’s reform plan a good idea? From what I heard about it (very little), it was. Why didn’t it go through?

deidre on February 4, 2010 at 1:47 PM

I think I just heard Karl Marx giggling from hell.

Fletch54 on February 4, 2010 at 1:48 PM

How many are unemployed and are not funding Social Security? That number has to got to be huge.

Knucklehead on February 4, 2010 at 1:39 PM

And how many self-employed do not pay into it bcs of capital gains?
My husband has an off-farm job & now he’s started commerical trucking.
I wonder what my accountant will say about the self-employment tax?
I think it’s outrageous you have to pay such a tax.
What if I do not want to draw SS or get on Medicare/caid?
It should be my right to decide.
Too bad we can’t all tear up our SS cards, stop paying SS/Medicare/caid taxes & save our $$ ourselves for our own retirements.
Oh how I hate the govt making me give them $$ for my retirement when I know I’ll never see a dime, or anything close to the amount I could have made from investments.

Badger40 on February 4, 2010 at 1:48 PM

There’s an economic downturn because people aren’t spending enough. So the government grabs the people’s credit card and starts spending.

How would that work for you? If someone stole your credit card, would you continue to make payments on it? Would you take on an extra job to pay the extra charges?

And if people aren’t performing good, profitable, productive economic activities, where is the value going to come from for social security or other government programs?

cthulhu on February 4, 2010 at 1:48 PM

The trick is that SS receipts kept the annual budget deficit lower for the last 25 years. Now, with SS in the red, they will add to the deficit.

zmdavid on February 4, 2010 at 1:48 PM

This just proves we need ZeroCare fast

DarkCurrent on February 4, 2010 at 1:48 PM

I will willingly give up my rights to Social Security (based on what I’ve already been paying in for years), in exchange for letting me keep my money from here on out.

Somewhere, sometime, some politician is going to (inevitably) sacrific his or her career and make sweeping Social Security reform, resulting in drastic, drastic cuts to beneficiaries. It won’t be pretty, but it will be necessary.

We know it won’t be Obama (and the problem’s not his fault). So maybe the next President. Sigh. I’m sad for our children.

Abby Adams on February 4, 2010 at 1:44 PM

You want to murder seniors in their beds. Be gone with you.

/every dem since 1994

fiatboomer on February 4, 2010 at 1:48 PM

Can’t wait till Mr. B. Hussein Obama blames Bush for this!

daesleeper on February 4, 2010 at 1:48 PM

Texas~we’ll boot the illegals and there will be room for all our conservative selves. I’ll bring the torches and margaritas!
HornetSting on February 4, 2010 at 1:46 PM

Sweet!, now if only I didn’t hate you south of the Red River types so Godam much, I’d appreciate that offer!

abobo on February 4, 2010 at 1:49 PM

Watch out, there is a good chance that Obama will nationalize/steal from your 401K and IRA saving.

jdun on February 4, 2010 at 1:38 PM

Don’t look now

This sounds like trying to bail out a flooded New Orleans by bucketing the water into Lake Pontchartrain.

So, what to invest in? Spices? A cow and some chickens for the back yard?

NTWR on February 4, 2010 at 1:49 PM

deidre on February 4, 2010 at 1:47 PM

Bush tip-toed on SocSec reform. He put forth concepts, but never a written plan. He was looking for buy-in from congress before getting things written into a proposed law. Sort of the complete opposite of ObamaCare.

WashJeff on February 4, 2010 at 1:49 PM

I think I just heard Karl Marx giggling from hell the Oval Office.

Fletch54 on February 4, 2010 at 1:48 PM

I truly believe BO has ressurected him & appointed him a czar.

Badger40 on February 4, 2010 at 1:49 PM

Why didn’t it go through?

deidre on February 4, 2010 at 1:47 PM

Because it would give Citizens more liberty.

daesleeper on February 4, 2010 at 1:50 PM

deidre,
President Bush wanted to give the taxpayer an option to put part of their SS into something that would make them more money than the SS system does, stocks etc. The d’s shot it down because it took the money out of the governments hands.
L

letget on February 4, 2010 at 1:50 PM

With all the unemployed not paying into the giant ponzi scheme it will fail pretty fast. I predict a lot of angry seniors getting a wake up call that the dems are not their friends.

dogsoldier on February 4, 2010 at 1:51 PM

We are 10 feet from the edge of the cliff and the vehicle has no brakes!!!

Robbya on February 4, 2010 at 1:31 PM

That’s what we get for buying a Prius.

rbj on February 4, 2010 at 1:51 PM

Borrowing from Peter to pay Paul, then paying interest to Peter with worthless IOUs. Is that like a sub prime loan?

a capella on February 4, 2010 at 1:51 PM

So much for that lock box.

Fletch54 on February 4, 2010 at 1:32 PM

Yeah…. if only we would have elected Al Gore in 2000, that money would have been safe and sound. (yeah, right)

UltimateBob on February 4, 2010 at 1:52 PM

You want to murder seniors in their beds. Be gone with you.

/every dem since 1994

fiatboomer on February 4, 2010 at 1:48 PM

They don’t have to be in bed.

Abby Adams on February 4, 2010 at 1:52 PM

Good thing we’re not wasting money on the moon or we’d be in serious hurt

DarkCurrent on February 4, 2010 at 1:52 PM

I remember in on of W’s SOTU speeches, he touched on the Social Security problem and how his reform attempts were stopped…

… The Democrats, in their classless way, burst into applause and cheering, and the camera zoomed in on Hillary’s sour puss, cackling away in a moment of triumph.

If anyone can find that clip, please paste it for all to see!

Seven Percent Solution on February 4, 2010 at 1:52 PM

You can run but you cannot hide from the IRS.

NoLeftTurn on February 4, 2010 at 1:36 PM

And they have the tools in which to make us pay.

Badger40 on February 4, 2010 at 1:52 PM

Keep in mind, this is combined with all the state & local budgets imploding, due to excessive pension obligations. It takes a lot of money to support everyone over 50 who wants to sit on their @$$ and collect welfare to their dying day.

MNHawk on February 4, 2010 at 1:52 PM

Texas~we’ll boot the illegals and there will be room for all our conservative selves. I’ll bring the torches and margaritas!
HornetSting on February 4, 2010 at 1:46 PM
Sweet!, now if only I didn’t hate you south of the Red River types so Godam much, I’d appreciate that offer!

abobo on February 4, 2010 at 1:49 PM

Flippin’ Okie, aren’t ya? Well, it’s not OUR fault that you live in a cesspool.
You stay where you are. We need a buffer zone against the gubmint.

HornetSting on February 4, 2010 at 1:53 PM

Bush tip-toed on SocSec reform. He put forth concepts, but never a written plan. He was looking for buy-in from congress before getting things written into a proposed law. Sort of the complete opposite of ObamaCare.

WashJeff on February 4, 2010 at 1:49 PM

Thanks, that makes sense. So Congress pretty much didn’t play ball…it wasn’t on their “to do” list.

deidre on February 4, 2010 at 1:53 PM

Last night Mr. Levine was discussing that a co-opting of our IRA’s and Roth Accounts are in the works.

Cindy Munford on February 4, 2010 at 1:53 PM

Means, meet test.

profitsbeard on February 4, 2010 at 1:53 PM

It takes a lot of money to support everyone over 50 who wants to sit on their @$$ and collect welfare to their dying day.

MNHawk on February 4, 2010 at 1:52 PM

One reason to learn from Europe.
But now they have all those Muslim immigrants.
They can pay for the old retired white men.

Badger40 on February 4, 2010 at 1:54 PM

Last night Mr. Levine was discussing that a co-opting of our IRA’s and Roth Accounts are in the works.

Cindy Munford on February 4, 2010 at 1:53 PM

Time to drain our IRA’s? Sounds good to me…buy more ammo.

HornetSting on February 4, 2010 at 1:54 PM

Watch out, there is a good chance that Obama will nationalize/steal from your 401K and IRA saving.

jdun on February 4, 2010 at 1:38 PM

That baloon has already been floated a few times. Folks it is going to get ugly and get ugly quicker than you think. There are only two ways out of this mess.

#1 Default on debt. I doubt this will be allowed to happen.

#2 Inflation. I suspect this will happen and happen very soon. 5-7 years of 10% inflation and all of our debt is magically wiped out. However, the economy will never recover from that.

Johnnyreb on February 4, 2010 at 1:55 PM

deidre,
President Bush wanted to give the taxpayer an option to put part of their SS into something that would make them more money than the SS system does, stocks etc. The d’s shot it down because it took the money out of the governments hands.
L

letget on February 4, 2010 at 1:50 PM

Thanks, L. I heard that which I thought was a great idea.

deidre on February 4, 2010 at 1:55 PM

The best they could do is simply freeze all benefits for a decade, and all federal pay, and all federal benefits, and all retirement payouts, and all social spending…All frozen.

No new spending…and every line of the budget reviewed to remove all pork…force the congress to vote on every line..No vote, no money.

JIMV on February 4, 2010 at 1:55 PM

I remember in on of W’s SOTU speeches, he touched on the Social Security problem and how his reform attempts were stopped…

… The Democrats, in their classless way, burst into applause and cheering, and the camera zoomed in on Hillary’s sour puss, cackling away in a moment of triumph.

If anyone can find that clip, please paste it for all to see!

Seven Percent Solution on February 4, 2010 at 1:52 PM

Witness the statists that hate your freedom applauding this.

daesleeper on February 4, 2010 at 1:56 PM

Was Bush’s reform plan a good idea? From what I heard about it (very little), it was. Why didn’t it go through?

deidre on February 4, 2010 at 1:47 PM

The Democrats were in control of congress, that’s why.

Ironic isn’t it? That’s why Obamacare didn’t go through either.

Lily on February 4, 2010 at 1:56 PM

We are 10 feet from the edge of the cliff and the vehicle has no brakes!!!

Robbya on February 4, 2010 at 1:31 PM
That’s what we get for buying a Prius.

rbj on February 4, 2010 at 1:51 PM

Too funny!!

tommer74 on February 4, 2010 at 1:56 PM

So is the Federal Government too big to fail?

What happens if the Fed Government shuts down?

To paraphrase Scotty from the new Star Trek movie: “I like this country! It’s exciting!”

Neo on February 4, 2010 at 1:57 PM

deidre on February 4, 2010 at 1:55 PM

Are you under 30?

Cause I have no clue why people under 30 would not be in full support of SocSec reform that allows people to keep their money in their account. These is NO reason for a young’n to NOT support this.

WashJeff on February 4, 2010 at 1:57 PM

Last night Mr. Levine was discussing that a co-opting of our IRA’s and Roth Accounts are in the works.

Cindy Munford on February 4, 2010 at 1:53 PM

As usual, he is correct, pdf of treasury inquiry if you scroll down.

NTWR on February 4, 2010 at 1:58 PM

That’s what we get for buying a Prius.

rbj on February 4, 2010 at 1:51 PM

But Ray LaHood says stop driving your Toyota

I smell monkey business again. Let’s all bum rap Toyota to sell more government motors cars.

Knucklehead on February 4, 2010 at 1:58 PM

The Democrats were in control of congress, that’s why.

Ironic isn’t it? That’s why Obamacare didn’t go through either.

Lily on February 4, 2010 at 1:56 PM

The Dems were not in control in 2005. The GOP had slim majorties in both houses in 2005. No where near what the Dems had in 2009.

WashJeff on February 4, 2010 at 1:59 PM

So all these hundreds of thousands of people who are losing their jobs every month, we pay for them to be on unemployment and then if things don’t look up, on welfare WHILE we’re paying for the retired…

This is looking like the very definition of redistribution of wealth.

(And I’m not blaming anybody in either category, just sayin’)

UnderstandingisPower on February 4, 2010 at 1:59 PM

Social Security is not a Ponzi scheme! It says so right on their website!

http://www.socialsecurity.gov/history/ponzi.htm

Ha, ha. They wouldn’t lie, would they.

zmdavid on February 4, 2010 at 1:59 PM

Are you under 30?

Cause I have no clue why people under 30 would not be in full support of SocSec reform that allows people to keep their money in their account. These is NO reason for a young’n to NOT support this.

WashJeff on February 4, 2010 at 1:57 PM

Yup, I’m 25 and know I won’t see a dime from SocSec when I retire; if I’ll ever be able to retire….I’m for reform and would have been more behind Bush; but I didn’t pay attention to anything political back then.

deidre on February 4, 2010 at 2:00 PM

OT………….

The House just passed the vote to raise the debt limit……barely.

Knucklehead on February 4, 2010 at 2:00 PM

A cow and some chickens for the back yard?

NTWR on February 4, 2010 at 1:49 PM

The govt will eventually confiscate them, too.
Or cap & tax you on them.
In 100 yrs or less, all Americans will be serfs.
We will not be able to live under the tax burden bcs we’ll have to sell everything we own bcs it’s taxed.
Next thing you know, they will tax us for having too many kids (China) & tax us for having too many rooms in our houses (Europe-in the past? or does it still happen?).
We are fast approaching a dangerous tipping point where all citizens will soon be branded criminals.

Badger40 on February 4, 2010 at 2:01 PM

Witness the statists that hate your freedom applauding this.

daesleeper on February 4, 2010 at 1:56 PM

That is the one! Thanks daesleeper….

Spread this video far and wide!

Seven Percent Solution on February 4, 2010 at 2:02 PM

deidre on February 4, 2010 at 2:00 PM

Make sure you friends in the same age group understand. Can you imagine having 12% of your pay going into a 401K account and then having your current 401(k) contributions to spend in Vegas or save for near future puchases?

Pretty sweet if it ever happens.

WashJeff on February 4, 2010 at 2:03 PM

I don’t buy that more people are collecting SS benefits than contributing to the pot as a primary factor. SS has been looted, looted I tell ya, like near everything else the fed gets its hands on.

RepubChica on February 4, 2010 at 2:03 PM

Bush tip-toed on SocSec reform. He put forth concepts, but never a written plan. He was looking for buy-in from congress before getting things written into a proposed law. Sort of the complete opposite of ObamaCare.

WashJeff on February 4, 2010 at 1:49 PM

–And if we had “invested” Social Security funds in the stock market as was proposed under Bush’s plan, things would probably have been significantly worse than they now are.

Jimbo3 on February 4, 2010 at 2:03 PM

NTWR on February 4, 2010 at 1:58 PM

I am at work so I can’t go to his transcripts but he was pretty specific about the legislation in question. He suggested that people write their members of Congress.

Cindy Munford on February 4, 2010 at 2:03 PM

Knucklehead on February 4, 2010 at 2:00 PM

Cohen says he is NOT stepping down. Sweeeeeeeeeet!

WashJeff on February 4, 2010 at 2:03 PM

but I didn’t pay attention to anything political back then.

deidre on February 4, 2010 at 2:00 PM

And that is why the young are always taken advantage of by the govt.
They are stealing your/our $$ with no intentions of giving it back to us.
They consistently raise the retirement ceiling, forcing us all to work longer in order to collect.
They are depriving us of our hard earned $$ that if we were allowed to keep, some would invest for their futures.
The other types would have to work when they’re old & perhaps depend upon charity, mostly their own doing.
But that is what families & churches are for-not the govt.

Badger40 on February 4, 2010 at 2:04 PM

daesleeper on February 4, 2010 at 1:56 PM

This needs to go viral PDQ

cmsinaz on February 4, 2010 at 2:04 PM

–And if we had “invested” Social Security funds in the stock market as was proposed under Bush’s plan, things would probably have been significantly worse than they now are.

Jimbo3 on February 4, 2010 at 2:03 PM

Stop with this stock market crap. Being in the stock market would not be required of anyone. An option for a low interest CD type of account would have been available to anyone.

Anyways, like investing in government Treasuries is a good idea like the SocSec funds are currently?

WashJeff on February 4, 2010 at 2:05 PM

Seven Percent Solution on February 4, 2010 at 1:40 PM
Knucklehead on February 4, 2010 at 1:58 PM

HHhhmmmmmm…if we have too many disabled and old people we can rent them out as Asian car testers.

IlikedAUH2O on February 4, 2010 at 2:05 PM

Knucklehead on February 4, 2010 at 2:00 PM

217-212 a squeaker. I think they are actually starting to wake up. Even though it is too late for the economy. DOW is down 220, and this should drive it down even more.

Johnnyreb on February 4, 2010 at 2:06 PM

The House just passed the vote to raise the debt limit……barely.

Knucklehead on February 4, 2010 at 2:00 PM

Hallelujah, were SAVED!!!

Fletch54 on February 4, 2010 at 2:06 PM

–And if we had “invested” Social Security funds in the stock market as was proposed under Bush’s plan, things would probably have been significantly worse than they now are.

Jimbo3 on February 4, 2010 at 2:03 PM

Investments include other things (like land, etc.) besides the stock market.
I should be allowed to keep my OWN MONEY & do what I please with it.
It is not my responsibility to pay SS for your grandma.
If my grandma was needy & didn’t have enough $$ for retirement, then it is MY responsibility as a family member to help take care of her.
It is the community & the churches & families that should help the elderly who: didn’t plan well
or lost their ‘retirement’ for whatever reason
The govt should not be operating as a charity or a retirement pension fund.
And if there had been more $$ available to people, by being able to keep their own earnings, it’s hard to say if the stock market would have done as bad, worse, or even better.

Badger40 on February 4, 2010 at 2:08 PM

Jimbo3 on February 4, 2010 at 2:03 PM

And regarding the market my current sotck holdings, which I have NOT changed in the last 7 years, are close to break-even (+/- 3% gain) due to dollar cost averaging.

WashJeff on February 4, 2010 at 2:08 PM

We can pay this off easy. Post-WWI Germany is the model. We’ll just fire up the printing presses and deliver buttloads of worthless paper to our debtors. Actually, we can save time by just sending them blank paper.

Physics Geek on February 4, 2010 at 2:09 PM

–And if we had “invested” Social Security funds in the stock market as was proposed under Bush’s plan, things would probably have been significantly worse than they now are.

Jimbo3 on February 4, 2010 at 2:03 PM

Now I wonder why, Jimbo…?

Seven Percent Solution on February 4, 2010 at 2:09 PM

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