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5 thoughts on “The Social Security Cricket Chirp”

  1. lepelerin says:

    Got to keep brokers employed! Hey Jim, there’s a job for you!

  2. Jon says:

    Jim, The reason the stock market is in free fall,is due mainly to the policies of progressives like Barney Frank. You and I both know that the CRA of 1977 and subsequently expanded upon during the Clinton years created much of the mess we are now dealing with. The practice of forcing lending institutions to fund loans to individuals who would not have otherwise have qualified created artificial demand in the housing market. When those people couldn’t make the payments the market began to tumble. With a little help from the party helpful like Chuck E. Schumer. Who almost single handly started the current banking crisis.

    Social Security is a Ponzi scheme, foisted on those of us intelligent enough to take care of our own needs, to the benefit of those that either aren’t willing or can’t. The problem is that when you remove the penalty for stupidity the world is soon filled with fools.

    As a matter of historic record, the market has done much better at returning investors money than the SS fund.

    1. Jim says:

      No, it’s not a Ponzi scheme. Don’t throw around phrases like “Ponzi scheme” carelessly.

      I am not a fan of Barney Frank’s economic politics. But Nationwide Mortgage and others who engaged in crazy-ass risky lending weren’t being forced to do so by the Community Reinvestment Act. There are a number of banks that chose not to engage in crazy lending, banks that are doing fine. Corporations that engaged in speculative trading of derivatives they didn’t understand weren’t being forced to do so. They were allowed to do so by financial sector deregulation and the evisceration of watchdog agencies, which was not a liberal political project.

      As a matter of historic record, the market stands where it did in 1997 and has lost half its value in one year.

  3. Jon says:

    Jim, I am not throwing around the term “Ponzi scheme” carelessly. Social Security is a government sanctioned Ponzi scheme. Whereby future generations are indentured to pay for the retirements of current retirees. It depends on an every increasing population base to support current expenditures. The money paid out is not based on profit but rather from forced investment from todays wage earners. One can argue that SS isn’t a Ponzi scheme because it isn’t “fraudulent”, in the sense that it is a Government program. In my opinion it’s still a type of forced redistribution.

    From Wikipedia:

    A Ponzi scheme is a fraudulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from profit. The term “Ponzi scheme” is used primarily in the United States, while other English-speaking countries do not distinguish colloquially between this scheme and other pyramid schemes.[1]

    1. Green Man says:

      Jon, the key to a Ponzi scheme is that it’s fraudulent. The idea that an operation will pay returns based upon the ability to obtain further investments is not necessarily fraudulent. Civilization itself has operated in that way, from the start, and it’s mostly worked.

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