Thursday, March 25, 2010

Social Security Goes Cash Negative

The front page of the New York Times today reports that social Security will go cash negative this year, years ahead of projection. The irony of this report coming two days after Congress passing a massive new entitlement program is no doubt lost on the Gray Lady.

If you don't already know, the original intent was that your social security taxes would go into a trust fund, but politicians long ago raided it. Social Security is now a pay-as-you-go program. The baby boom starts retiring next year.

On another subject, a college friend, one possessed of a different world view, chided me for blaming the whole financial crisis on Fannie and Freddie. This was certainly not my intent, nor can blame be limited to F&F. For my entire take on the crisis, you can look at my post called "Crash Test Dummies" from March 2009.

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