In the late 1970’s then president Jimmy Carter reported that the Democrats had worked out a plant to insure that the social security system would be sound for at “least 40 years”.
That 40 year window is now closing.
The plan was very simple, rob Peter to pay Paul. The social security trust that was initiated allowed the government to count bonds as part of the trust. In other words the debt would be carried as an asset. I wish that the average Joe could do the same thing.
On Monday the social security administration said the benefits that currently are given to over 55 million Americans each year would run out of money by 2033. Even worse the disability program that funds millions of American citizens is in worse shape. It will be out of money in less than four years.
Talk about a political football!
Democrats and Republicans constantly do battle over public spending and how much that government should have to do with this issue. The Democrats feel government should have a much bigger role in the economy. The Republicans claim that big government robs us of individual rights.
Right now compromise is very hard to come by in politics. The congress is polarized, you are either with me or against me there appears to be no middle road.
How will this issue affect the stock markets?
It may already have been discounted, and “the street” has this built in.
It may be an issue like the Euro debt and will be used anytime things go wrong.
In any case we need to learn to react to the markets; we can’t tell them what to do. That takes discipline and I can help you work on that skill. I have taught scores of students how to trade any market condition and I can teach you too.
To contact one of my financial consultants and learn how I can teach you how to make successful trading decisions, in any market simply click here:
Keep those stops tight.
Todd “Bubba” Horwitz
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