Watch Your Wallet

Congress is just about to take the axe to Social Security as we know it. The prudent advice would be to watch your wallet, but they already have it and most of the money has been looted from it.

The old way of managing Social Security built on claims to the real growth of the US economy will be replaced.

People will pour their money into the financial markets. The risks of return will be greater. Transaction costs from churning accounts will soar. Fraud will enter the system and along with it more ineffectual government regulation to quiet the worried minds of the innocent citizens. Many loopholes will allow people to escape from putting the required money into their accounts. Those who have for decades poured money into the old system will find the cupboard bare.

It’ll all look great until the first big wave of those with no retirement money hit the system. It won’t look quite so handsome after that.

The new system will be a many headed beast, neither fish nor foul, a dragon come to scorch everything in its path.

It is a matter of trust and gullibility. Watch your wallet.

Just remember, “greed is good,” when you are old and gray and sitting on the street corner with a tin cup in hand.