Did the government invest social security in the stock market?

[giget]

I remember in past yrs it was brought up. Did they do it and is that why social security is broke?

[Sci_Phy]

no, they didn't

[Jack]

No, they bought government securities. And the reason it's broke is because since the mid 1980s, every penny of the fund not used for immediate outlay to recipients has been turned over to Congress to be absorbed in the annual budget.

Thus, for over 20 years now, Social Security (in effect) has been an on-line budget item (as opposed to a self supporting Off-Line Expenditure, as it was originally set up to be.

[screechinglake759]

No, they didn't and THAT is why it's broke.
People are freaked-out about the recent drop but EVEN with that, if you were retiring now you'd have a return over 1000%
SS is now "yielding" less than 1%
Government has simply spent ALL if the SS money. They say the SS account is full - of treasury bonds. Let me give a very simple illustration.
- You are the government.
- SS is your checking account. People deposit their money in that account and you're supposed to pay them back later.
- You spent it. ALL of it.
- You write YOURSELF checks (bonds) and deposit them into your own account and say it's full.

People will say the bonds are good; after all other governments buy them. I'll continue the example.
- When you're short on cash, I give you some in exchange for a post-dated check. I know you have an income and I assume the check will be good. I just "bought your bonds."
- If you write YOURSELF a check, you haven't accomplished anything, though.

So, you can see your bonds have value to OTHERS but are meaningless for YOURSELF. Having the SS accounts "full" of government bonds is exactly like you writing yourself a check and depositing it in your own checking account to "replace" the cash you took out.

[Watch IT!]

pork bellies

[LabRat]

NO as a matter of fact, but might be a good idea
But hold on a sec.. Who told you Social security was broke.....?

Follow Me people. You ll get smart if ya do.
ONe day they said lets have SS, and they did. they started paying people with Tax money already in our government that by the way does not sell anything. So if they got Money they got it from YOU the TAX PAYER. not used cars used tvs they don't sell cotton, hot dogs, they DO NOT MAKE MONEY. NOW

when they started paying people SS at 65 YO they also the same day started taking money from everyone that worked... it is an insurance they are holding it till you need it, get hurt cant work get old cant work what ever. NOW everyone in AMERICA would have to stop working for them not to have enough to pay everyone that is on SS. but it sure scares the Hell outta you when they say sensation statements like SS is bad off we need mo money. its been that way from day one they claim they don't got it but everyone gets it and no one has lost it. and wont. BUT some idiots want to stop SS like John McCocain. he tell you your better off investing your own money and it will make more money for you. that might be true of some people, but the vast majority would wipe out there SS account way before they retire for something like a vacation or a luxury LEXUS, Left to our own devices We would not see that far a head. then when that day comes the US GOV wont have nothing for you cuz they don't MAKE MONEY they PRINT IT but MAKE NONE. every thing they have everything they do come from YOU the AMERICAN TAX PAYER which would not include
the guy running the US Treasury dept at this current time evaded His taxes then said Oops! I did not know I had to pay for that. the list of those thieves goes on and on.

that being said YES it is a fact that the US GOV did in fact take a large chunk right out of it SS and spent it on thier own stupidity. still to this day have not repaid a cent.


oh yea if theyare broke then why am I still getting my check
it because last week when you looked down at your check and saw that tax taken out. they took it. they aint broke and unless your all about to quit your job they wont ever get broke.

if we just did not pay them ( OBAMA, and the rest of the do nothigers ,one year we could re-coop the losses.

remember that year they went I strike and shut down the Gov.
I do
I still went to work
You still went to work
on the way to work the traffic lights still worked and all the airplanes where still flying.
Do we really even need a Gov... not hardly and not at 4 million a year for one man salary