Replies to post #319449 on Zeev's Turnips Patch-No Politics (ZEEV)

[Sherlock356]

The issue they WONT talk about is if we start taking a portion of young workers' SS contribs and put them into separate accts....where will the Govt come up with the Trillion dollar HOLE that will create in the cash-flow to pay current recipients and also the first wave of Boomers soon to retire? It just cant be done without massive spending cuts or tax hikes......IMHO. Perfect example of "Fuzzy Math" IMO.

[shoreco]

TJ Parker, Actually the Government is just looking to give the younger class the "option" to have their money put into something other than what SS is today. They won't do it w/out consent, but if they can get the younger crowd to play along, it will offset the "sucking" sound of the money that has to come due over the next couple of years as the baby boomer era is about to retire...

Do I agree to this???

Not at all, all I'm saying that for every $1 invested in a rising market actually adds between $1 to $5 in market cap...

Let's use INTC as a small example (we could use any stock for this example)...

INTC has 6.3 billion shares outstanding...

INTC trades around 68 million shares a day...

INTC currently trades @$23...

For every dollar that INTC rises their market cap goes up 6.3 billion bucks...

Today INTC added $3.1 billion in market cap on 73 million shares...

Let's assume 40 million were "prospected buyers" (just an example)...

40 million x $23 bucks = $920 million invested...

930 million invested just added 3 billion to INTC's market cap...

So, for every $1 invested, we get a $3 return on paper, that is why I call it "paper mache"...

Of course this is just an example, and my numbers are fictional, but it is what it is...

Is = Wealth creation...

Do it in after hours and "gap ups" and it gets even easier...

EOM
Shoreco

[Newly2b]

TJ, I don't understand the proposal completely, but if it prevents the government from spending the contributions as they do now, and forces them to be invested somewhere instead, it could be a good thing. If the government had done that with at least some of the money contributed to begin with we wouldn't be in this mess.

The danger, of course, is that the money will be lost in whatever it is invested in which brings us back to Square One (SS was created because people were not responsible for providing for their own retirements) and all the old people will end up on welfare, courtesy of our government anyway.

Newly