Posted by
Always To The Right on Thursday, February 04, 2010 6:30:13 PM
Last month, we noted that Social Security had delivered its worst performance in decades. Now, Allen Sloan warns investors at Yahoo Finance that the entire program has gone into the red — and will stay there. Get ready, Sloan says, for the mother of all bailouts
Technically, the fund should receive $120 billion in interest payments
from the Treasury, which owes SSA for decades of skim repaid only in
IOUs. However, the interest itself will only be paid in IOUs.
The crisis in SocSec was supposed to arrive in 2019, according to the
CBO in 2008. Who came up with that figure? Peter Orszag, the same man
who missed the 10-year deficit projection by over $2.2 trillion
in the spring of 2009, and who now runs the Office of Management and
Budget. Democrats used that figure, as well as others produced by
various sources in the years preceding that analysis, to argue against
Social Security reform, and to paint Republicans who warned that the
crisis was a lot closer as Chicken Littles or grubby politicians who
just wanted to get their hands on Grandma’s Social Security check.