8537
VIP Member
I open up "Trust Accounts".. they are psecial bank accounts. Like escrow accounts.
And when they go to the bank, does the bank create a special vault with actual bills to store the trust? or do they....Lend out those funds to others?
That's what the SS trust has done - it has lent most of its deposits to someone else.
I promise you... if spend $1 on anything other than trust expnses or the trustee.. I have MAJOR problem on my hands.
Right, but you're not the bank receiving the deposits.
Well, this is getting silly. The bottom line is that if I filled a pension fund full of personal IOU's in the private sector, I'd probably be looking at a great deal of jail time.
No, I disagree - that's exactly what a pension fund is. The company/government takes money from you and promises a guaranteed payment at some future date. In the meantime, it uses your deposits to pay current pensioners and invests the remainder in an interest bearing something-or-other.
If, when it comes time to collect your pension, the place they invested those remainders refuses to - or can't - make payments back to the fund, then you don't get your pension.
The only difference is that in the case of pensions, the federal government insures them and the firm can be held liable. In the case of SS, the firm that borrowed the funds can use a simple act of congress to tell the fund to pound sand.