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Author: billjam Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: Maybe financial crisis could have been worse Date: 9/19/2008 2:22 PM
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Just returned from my weekly stop at Wal-Mart and I got to thinking about this financial crisis. This week I've seen posts on several discussion boards asking whether money market mutual funds were safe. Now these people aren't talking about the high yield short term bond funds used by institutions and wealthy investors that are sometimes called money market funds. Those funds definitely take risks and more than one has gone under. But these posts were asking about retail money market funds like Fidelity Cash Reserves and Vanguard Prime Money Market. Funds that are sponsored by huge mutual fund families that will never, ever, let them break the buck. But I mention these posts because I think they show the lack of financial understanding even among posters to Motley Fool and Morningstar discussion boards.

So then I began to wonder what might have happened if George Bush and the extreme elements in the Republican party had gotten their way on replacing Social Security with private accounts. [I think private accounts would be great as a supplement to SS.] I'm talking about the element of the Republican party that wants to dismantle SS. Not even sure Bush is a part of that but that's where a lot of his support came from.

I can just imagine the panic among the financially uneducated, which includes a few management types I know along with a lot of low level hourly employees. Seeing the financial market meltdown and knowing your retirement money was going with it. There would be blood in the streets. Just one more reason I think we need to fix, not dismantle, SS, and soon. Bush wasted 8 years because he drew a line in the sand. Whoever the next President is, he needs to open a meaningful discussion and get something done. SS had problems when Bush took office but they could have been fixed with minor adjustments. The longer we wait the more drastic the fix will have to be.
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Author: fleg9bo Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13991 of 19483
Subject: Re: Maybe financial crisis could have been worse Date: 9/19/2008 4:30 PM
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I began to wonder what might have happened if George Bush and the extreme elements in the Republican party had gotten their way on replacing Social Security with private accounts.

Who wants to do that--you got any names? Bush wanted younger workers to be able to put part of their SS contributions into private accounts while leaving the system unchanged for older workers and the already retired. That way the younger workers would get a much better return on their contributions than we do when they retire while being less of a burden to the people who will be paying the taxes at that future time.

Perhaps you've been taking too seriously various Democrats' lies about Repubs wanting to taking SS checks away from the elderly.

--fleg

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Author: billjam Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13992 of 19483
Subject: Re: Maybe financial crisis could have been worse Date: 9/19/2008 6:21 PM
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I'm taking seriously what several members of the far right said during Bush's first term while appearing as guests on FOX and other TV networks. I know it's crazy but they are still fighting the New Deal, even though most of them weren't alive in the 1930's. They want to go much farther than putting some SS into private accounts. Sure, they won't touch existing recipents, but by the time we're dead, they want SS completely gone.

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Author: SeattlePioneer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14000 of 19483
Subject: Re: Maybe financial crisis could have been worse Date: 9/19/2008 11:17 PM
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<<I can just imagine the panic among the financially uneducated, which includes a few management types I know along with a lot of low level hourly employees. Seeing the financial market meltdown and knowing your retirement money was going with it. There would be blood in the streets. Just one more reason I think we need to fix, not dismantle, SS, and soon. Bush wasted 8 years because he drew a line in the sand. Whoever the next President is, he needs to open a meaningful discussion and get something done. SS had problems when Bush took office but they could have been fixed with minor adjustments. The longer we wait the more drastic the fix will have to be.

>>


I suppose "The fix" you are talking about means raising taxes.

Personally, I'd say Bush has had 8 yearsd of success with Social Security because he didn't raise taxes, and proposed alternatives to a currently greatly underfinanced system.


And then there is Medicare, which makes the finances of Lehman Brothers look like a "buy."



Seattle Pioneer

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