Anyone think turning SS over to the states as Perry wants to do is a good idea?

[NNN0LHI]

http://www.chicagotribune.com/news/politics/la-pn-perry-town-hall-20110930,0,479498.story

By Paul West

7:39 p.m. CDT, September 30, 2011

<snip>During the event, Perry repeated his claim that Social Security is a Ponzi scheme and hinted at ways he would consider changing the federal program to make it solvent. Those include raising the retirement age, providing “private options” for younger workers “to decide how is going to be invested, and allowing states to “opt out of Social Security and create their own programs” for government workers and retirees.

Perry indicated that those 55 and older would not be affected by future changes and warned voters not to let anyone “try to scare you” by claiming “this guy,” meaning himself, “is taking your Social Security away.”

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http://abcnews.go.com/Business/state-bankruptcy-change-life-public-pensioners-bond-holders/story?id=12732137

What if Your State Goes Bankrupt?

By ALAN FARNHAM
Jan. 24, 2011

Under existing law, a state cannot go bankrupt. That's not because the action is forbidden. Not the U.S. Constitution nor any other piece of paper says a state cannot. The bankruptcy code simply does not address the possibility.

Now lawyers, politicians and other ingenious folk are looking for a way around that problem -- a fact that should come as no surprise, given the perilous financial health of California, Illinois and other states encumbered with crushing debts.

The 50 states have spent collectively, in the past two years, half a trillion more dollars than they took in as taxes. Their pension funds, by some estimates, are underfunded by another trillion.

Like Titanic victims struggling in the water, they are desperately grabbing any orange crate that floats by, trying anything to stay afloat.