Ask help to a trouble maker?
In 1930, the collapsed stock market caused Great Depression. It motivated the government to build up the Social security system. Of course, the Social Security fund avoided the trouble maker - stock market. The fund is invested in national bond which gives a guaranteed income. Not very high but stable. What Bush now is leading people back to that trouble maker - stock market. Is that absurd?
Social Security is a successful program. The expense is low. The administration fee is less than 1% of total investment. It is also a rare clean program. Pension are collected, paid to retired people. Interest group can't touch it with any excuse. In a clear water tank, The quantity of fish is clear, countable.
Now Bush tries to meddle the water, said you can catch more fish in muddy water. But muddy water won't produce more fish. Someone may catch more fish, But their gain will be others' loss. Making high profit in stock market is always the privilege of inside group. Average people, after all, will gain less if not a loss.
Nebraska eliminated the personnel investment plan in employee's 401(k) pension is a good example.
Re: This is a problem that is beginning to be recognized. Since 1964 Nebraska offered state employees the chance to manage their 401(k)-type plan. Extensive employee education and training seminars were given, and everyone expected outstanding investment returns. But when the state audited the program in 2000, the results were incredibly discouraging: employees were making bad investment after bad investment. So in 2003, Nebraska eliminated employee choice from its 401(k) plan.
From: NewCartesian
http://forums.washingtonpost.com/wpf...s?msg=2800.351