tag:blogger.com,1999:blog-7345275.post111435742557150345..comments2023-10-30T11:13:44.310-04:00Comments on The Ethical Werewolf ‡ by Neil Sinhababu : Join us at the poker tableUnknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7345275.post-1114522135956159232005-04-26T09:28:00.000-04:002005-04-26T09:28:00.000-04:00It is no suprise that some of us on The Street sup...It is no suprise that some of us on The Street support the privitization of social security. The first reason you stated (higher management fees/comissions) is probably the biggest reason, and your focus on bringing more fish to the poker table is something people here are definately interested in. I have never heard the reason that it might make people more sympathetic to Wall Street policies, but that sounds reasonable.<BR/><BR/>However, there are some in finance ( e.g. Warren Buffet, the second richest man in the world ) who think that the privatization plan is a bad idea, even from purely selfish interests. Firstly, this large influx of new money int the market, especially without thoughtful investing is likely to dilute the risk premia where many people make their money. This will lead to lower returns for everyone, financial types and workers alike.<BR/><BR/>Secondly, the current SS trust fund invests only in US treasury products. If it stops doing this, the US will still have to finance that debt somehow. I can go on for a while about why a large national debt is bad for Wall Street, as well as for everyone, but I do not think I need to in this forum. But let me point out that Wall Street is not just the stock market, we have bond traders too.<BR/><BR/>Finally, any hit to the economy, in any sector, as this SS plan seems like it would do, can affect the Street. We actually have a stake in sound fiscal policy by the gov't.<BR/><BR/>Enough of my ranting, back to work.Anonymousnoreply@blogger.com