One of the big drives behind Social Security privatization was the desire to find more money -- in the case of Social Security, a lot more money -- to keep the fires burning on Wall Street. Not just more fees for the people handling the money, but more money to keep pushing asset values higher.
And there it is – we want more capital so we can play new and bigger games.
I don’t know why his phrasing hit home more than the other things I’ve read – but that was enough to raise the hairs on my neck.
Thinking of Social Security as just another cash box to raid.
Jesus.
(Oh, and - last year the government sunk the federal pension gurantee fund into the stock market. Just FYI.)
1 comment:
When it comes down to it, the stock market is essentially just the greatest of Ponzi schemes. The same problem applies, you have to keep finding more money to continue the upward trend.
I would say that this is one of the problems with the change from the payment of dividends to just having increasing stock price being an 'investor' reward. I do wonder if we will get back to a more dividend based market. Seems more sustainable, but then again those poor CEO types will have to find other remunerations.
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