Social Security

With all of the stir, both for and against privatization of Social Security, I finally got disgusted enough to comment.

A few years ago, I retired from the Real Estate Lending field. Most people don't know what happens to their loan once it closes. Even though you pay the payments to the bank that made the loan,(called servicing) an investor actually buys or funds the loan, Many such loans are bundled together, and shares are sold in the multiple loan package. Many union retirement programs and life insurance companies invest in these loans. They are long term, as is the commitment to their policy holder or union member.

Federal regulations force these groups to invest in conservative issues, such as bonds and the above mentioned loans.

Now we come to Social Security. This is supposedly an insurance plan, and certainly qualifies as a retirement fund.

BUT, alas, there is a problem here. First, Congress has stolen all of the money. There is no fund. You cannot invest that money which doesn't exist. So, Congress must first get their collective hands out of the till.

Then we operate it like any other retirement fund, investing in solid conventional residential loans. I rest my case...