Does the Social Security reform proposal have a chance? Is it good for the stock market?
Yes and maybe are the answers. It certainly stands a chance with a Republican Congress and a Republican President. Will it be good for the stock market? I guess ultimately it will be, because it means there will be a lot more money available to buy stocks. It also means that the government will have less to spend…. If we have individual Social Security accounts, then the dollars you put in will be available to your name and not put into the general coffer. I think it could work, but there are many problems. One is that many Americans do not have, or will not choose to gain, the sophistication necessary to make these investment choices….The greater conflict of interest issue bothers me as well. Is it appropriate for the Social Security investment fund to own shares in tobacco companies? Is the government then liable to shareholders of the Social Security investment fund if they sue tobacco companies and therefore reduce their value? Q: What was the investment performance in 2004 for
