Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

"Liberal" deficit commission member Andrew Stern: Invest Social Security Funds In Wall Street

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
 
Better Believe It Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:17 PM
Original message
"Liberal" deficit commission member Andrew Stern: Invest Social Security Funds In Wall Street
Edited on Thu Jul-01-10 06:20 PM by Better Believe It
Andy Stern: Invest Social Security Funds In Wall Street
by Ryan Grim
June 30, 2010

Andy Stern, a key member of the deficit commission, is pushing to invest a significant portion of the Social Security trust fund in private companies through the stock market, the former labor leader told HuffPost.

Stern, taking a break from one of the few public meetings of the National Commission on Fiscal Responsibility and Reform, said that Social Security "needs to be, like any pension fund, brought back into balance."

There were several ways to bring the fund into balance, he said, but one that he favors consists of "investing some percentage of government money in the stock market, as they do in Canada. Not individual taxpayer money, but government money."

Stern said that Canada's retirement system invests roughly 15 to 20 percent of its funds in the market, a range he thought reasonable. "There are lots of mechanisms for governments to be prudent investors," he said.

Wall Street has long sought access to Social Security money and opponents of cutting Social Security have been closely watching Stern, the former head of the Service Employees International Union, worried that he may back privatization efforts.

That risk is too great to gamble the fund, says Jane Hamsher, whose blog Firedoglake.com has been closely covering the commission deliberations. She highlighted the bad investments made on behalf of a New Jersey state pension fund by Obama-backer Orin Kramer and the scandal involving Steven Rattner and a pension-fund kickback scheme.

"Steven Rattner and Orin Kramer should not be allowed to touch Social Security," said Hamsher. Investing Social Security funds in the market ignores the corruption at the heart of Wall Street, she said. "It's a Ponzi scheme run by con artists," she said of the market. "Why do you take that risk for three percent? Wall Street wants their hands on the money. Who's going to pay these fees? And we're doing this why? So Pete Peterson doesn't have to pay his taxes?"

Read the full article at:

http://www.huffingtonpost.com/2010/06/30/andy-stern-inv...

So Stern's proposal could amount to handing over to the Wall Street sharks over 500 billion in social security trust funds!

No thanks. I think I'll pass on that.

So what's the $$$ payoff for the easily corruptible Mr. Stern? Stern's reward might be a huge "finders fee" if his scheme becomes law. And I'm sure that Mr. Stern would at least be given a cushy Wall Street job awarding him a millionaires salary, millions of dollars in bonuses and terrific perks along with a wonderful golden parachute. BBI


Printer Friendly | Permalink |  | Top
FiveGoodMen Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:18 PM
Response to Original message
1. God damn it!
:grr:
Printer Friendly | Permalink |  | Top
 
stray cat Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:22 PM
Response to Reply #1
2. So its better that they spend it on other things like war in Iraq?
Edited on Thu Jul-01-10 06:23 PM by stray cat
SS is spent for other things currently in the government - there was never a SS lock box - they spent it on other programs! I would like to see SS input spent on SS for a change
Printer Friendly | Permalink |  | Top
 
Better Believe It Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:24 PM
Response to Reply #2
3. No. Social Security funds should not be given to Wall Street or spent for war.

Those aren't the only options.

Printer Friendly | Permalink |  | Top
 
WinkyDink Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:25 PM
Response to Original message
4. Which companies? Bethlehem Steel? GM? Blockbuster? Oh, wait.....
Printer Friendly | Permalink |  | Top
 
geek tragedy Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:27 PM
Response to Original message
5. Stern and Jane Hamsher used to be boyfriend-girlfriend.
I'm guessing a reconciliation is out of the question now.
Printer Friendly | Permalink |  | Top
 
Better Believe It Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:29 PM
Response to Reply #5
9. I would hope so! :) Are you sure about that?
Printer Friendly | Permalink |  | Top
 
geek tragedy Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:39 PM
Response to Reply #9
14. it's common knowledge
http://www.politico.com/news/stories/1209/30131.html

"But Hamsher is a funny kind of outsider: One distinctly comfortable with Washington's circles of power. She's a frenetic operator of the mainstream media, the blogs, and the email lists that power semi-official Washington. She learned where the wires are in part from one of the ultimate insiders, SEIU President Andy Stern, whom she dated for two years."
Printer Friendly | Permalink |  | Top
 
Better Believe It Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 10:29 PM
Response to Reply #14
35. I'm usually not very well infomed on those matters.

If not friends or relatives, I find out a couple broke up about one decade after the event!
Printer Friendly | Permalink |  | Top
 
RC Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:28 PM
Response to Original message
6. Social Security is not a pension fund.
Social security is primarily a social insurance program providing social protection, or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others.

http://en.wikipedia.org/wiki/Social_security
Printer Friendly | Permalink |  | Top
 
truedelphi Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 07:06 PM
Response to Reply #6
18. Wikipedia is edited by any and everyone who thinks they
Understand something about a topic.

You just try and apply for SSI for an existing disability, and let on during one of the interviews that you are doing this because your job prospects are slim to none. You will be booted out of the application process so fast your head will be spinning.

Printer Friendly | Permalink |  | Top
 
Warren Stupidity Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 07:57 PM
Response to Reply #6
26. Sorry to inform you but it is a pension fund.
You can take all those words, add a whole bunch more, but in the end what happens is that when a participant reaches their age of eligibility they start receiving a check every month until they die. The size of that check is based on their earnings and years they participated. To the participants it functions exactly like a pension plan. For many of us, our sole means of financial support when we retire is our social security check. It is a pension plan.
Printer Friendly | Permalink |  | Top
 
northoftheborder Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:28 PM
Response to Original message
7. NO NO NO to Stern's suggestion! n/t
Printer Friendly | Permalink |  | Top
 
hayu_lol Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:33 PM
Response to Reply #7
10. Lessee...this idea has been shown repeatedly over the past few...
years not to work. So, this genius wants to try again by doing it the same way?

Screw these bastards...SS is the PEOPLE'S money.
Printer Friendly | Permalink |  | Top
 
gratuitous Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:29 PM
Response to Original message
8. Uh . . . yeah
Why don't we call that Plan B, okay? Uhm, "B" for, oh, let's say BULLSHIT.
Printer Friendly | Permalink |  | Top
 
Laelth Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:38 PM
Response to Original message
11. No. No. and No. This makes me furious. n/t
:dem:

-Laelth
Printer Friendly | Permalink |  | Top
 
amborin Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:38 PM
Response to Original message
12. K&R
Printer Friendly | Permalink |  | Top
 
Dawson Leery Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:38 PM
Response to Original message
13. I am now seeing why Al Gore was adamant about
placing Social Security in a lock box.
Printer Friendly | Permalink |  | Top
 
w4rma Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 09:47 PM
Response to Reply #13
32. It's time to bring back the lock box for social security. It's time to bring back the campaign.
Edited on Thu Jul-01-10 09:47 PM by w4rma
THIS is why they stole that election.
Printer Friendly | Permalink |  | Top
 
Phoebe Loosinhouse Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:44 PM
Response to Original message
15. He probably got the invitation to dance with the "in" group under the owl. nt
Printer Friendly | Permalink |  | Top
 
Raineyb Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:50 PM
Response to Original message
16. WTF? Did they NOT notice the craptacular performance of Wall Street of late?
Edited on Thu Jul-01-10 06:51 PM by Raineyb
They want to give Wall Street those funds so they can piss them away too then demand that we the taxpayers keep them from going under? Is he out of his goddamn mind?

Hasn't Wall Street done enough to fuck things up?

Jesus Christ on a pogo stick what the fuck is wrong with these people? I don't have enough curses in my vocabulary to properly express how fucking bad an idea this is.
Printer Friendly | Permalink |  | Top
 
FiveGoodMen Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 07:07 PM
Response to Reply #16
19. What Bush failed to accomplish, 'our' guys will finish for him.
Printer Friendly | Permalink |  | Top
 
Raineyb Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 07:21 PM
Response to Reply #19
23. That unfortunately, seems to be a recurring theme with the Democratic party.
They pass things that Republicans only dreamed of and people will tell you to STFU when you point this out because it's being disloyal. And they wonder why Ralph Nader was able to get people to vote for him.
Printer Friendly | Permalink |  | Top
 
mmonk Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 09:32 PM
Response to Reply #19
30. Yes. It will be Democrats that fulfill the long time dream of the Republican
party of dismantling social security and medicare (and anything else that resembles New Deal politics).
Printer Friendly | Permalink |  | Top
 
JHB Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 07:19 PM
Response to Reply #16
22. But all the executives are getting big bonuses! So they must be performing well!
Chuckles says so!
Printer Friendly | Permalink |  | Top
 
JackRiddler Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 06:58 PM
Response to Original message
17. Oh, but the Commission isn't a fix!!!
Printer Friendly | Permalink |  | Top
 
donco6 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 07:34 PM
Response to Reply #17
25. "It's just a recommendation!"
Yeah, right. Where do the apologists run off to when the facts start creeping out?
Printer Friendly | Permalink |  | Top
 
lovuian Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 09:34 PM
Response to Reply #25
31. It is stupid considering the Stock market crash
we have here
Printer Friendly | Permalink |  | Top
 
joe black Donating Member (514 posts) Send PM | Profile | Ignore Thu Jul-01-10 09:59 PM
Response to Reply #25
34. Boy you got that right.
Printer Friendly | Permalink |  | Top
 
Wednesdays Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 07:13 PM
Response to Original message
20. Aw Jeez, NTSA
Printer Friendly | Permalink |  | Top
 
JHB Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 07:17 PM
Response to Original message
21. The Veal Pen speaketh
Contact everybody you can. Representatives, senators, don't forget the President. Remind them why SS was called the "third rail", in no uncertain terms.
Printer Friendly | Permalink |  | Top
 
unblock Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 07:29 PM
Response to Original message
24. oddly enough, avoiding investing in equities was one of greenie's arguments for shrub's tax cuts
he argued that, omg, what if we have so much surplus that we pay down the entire national debt and are STILL running a surplus, WHATEVER WOULD WE DO WITH THE EXTRA MONEY?!?! we would have to invest it in the market and that would mean the government is picking winners and losers and we can't have that so we must have TAX CUTS to make sure we don't pay off the ENTIRE NATIONAL DEBT.

i know it sounds crazy NOW, but at the time, it sounded, well, crazy.
but if there's anything republicans love more than a tax cut, it's a crazy rationalization for a tax cut.
Printer Friendly | Permalink |  | Top
 
ProSense Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 08:03 PM
Response to Original message
27. The wild speculation continues

"investing some percentage of government money in the stock market, as they do in Canada. Not individual taxpayer money, but government money."

How does one get that he backs privatizing Social Security from this?

Stern's May letter.

5. Strengthen Retirement Security. This Commission should examine our countrys entire retirement security system, private and public. Taxpayer dollars are spent in a multitude of ways, not just on Social Security with the aim of promoting retirement security. Yet, many Americans retire with anything but security. We should include as part of our agenda ideas for strengthening the private parts of the retirement security system, reviewing both the adequacy and solvency of the Social Security system, and the possibility of add-on universal private accounts.


Stern's is talking about how money is currently spent on private accounts, not diverting money from Social Security. Sounds like 401K reform.

Democrats once blasted President George W. Bush for his plan to let people use some of the money they paid in Social Security payroll taxes to start private investment accounts. Democrats derided Bush's plan as "privatization" of a popular government entitlement that could put it at risk. But Stern's suggestion is different, however, because he suggests "add-on" private accounts, SEIU spokeswoman Lori Lodes said. Bush wanted to allow people to start private accounts with money designated for the Social Security system.

link


Printer Friendly | Permalink |  | Top
 
sendero Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 09:49 PM
Response to Reply #27
33. No matter how you slice and dice it..
... it's a ploy to force YOU to put a portion of your PAYROLL DEDUCTION in the stock market, a market so corrupt it makes the Afghanistan government look good.

It is as simple as that, and there is no way to spin it into something positive, it is ORGANIZED THEFT.
Printer Friendly | Permalink |  | Top
 
girl gone mad Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 10:54 PM
Response to Reply #27
37. Yeah, giving taxpayer money to Wall Street crooks sounds like a brilliant plan.
What could possibly go wrong?

:rofl:
Printer Friendly | Permalink |  | Top
 
mmonk Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 08:04 PM
Response to Original message
28. We're going to be one of those privatization experiments like Chile
when we installed Pinochet. Instead of Latin America, we are the target now.
Printer Friendly | Permalink |  | Top
 
rucky Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 08:20 PM
Response to Original message
29. Seems like the world's leaders are ready to double-down on stupid.
Don't these people get paid to think?
Printer Friendly | Permalink |  | Top
 
Odin2005 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-01-10 10:46 PM
Response to Original message
36. YOU CORPORATIST FUCK! Go straight to Hell, Stern!
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Sat Jul 12th 2014, 08:47 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC