There are interesting parallels between the Madoff Ponzi scheme and the US and many other social security schemes internationally.
As the huge bulging demographic that is the Baby Boomers retire, the smaller demographic of the next generation will have to fund their retirement. As the Baby Boomers retire and begin to withdraw their funds from Social Security system there will be huge redemptions from US and other stock markets as much of their retirement funds are invested in the stock markets.
Irish writer, Joe O’Connor has been appearing on RTE’s (Ireland’s national radio station – akin to the BBC) Drivetime in recent weeks with some witty, inspiring and uplifting poetry.
His beautiful words perfectly illustrate how an economic recession or depression is not the ‘end of the world’ rather simply a period of slower or declining economic growth.
While O’Connor’s poem is focused on
On a day when I read that rising fuel prices are putting a pinch on the world’s oldest profession
I am reminded that there are commentators that can laugh in the face of creeping economic woes.
It might not be morning again in America but Bush hopes to wake up the economy via his Economic Stimulus Act of 2008. The stimulant – pumping more than $152 billion (or about 1% GDP) into the economy via tax rebate cheques – will start arriving in the mailboxes of Americans over the next three weeks.
The plans proponents are optimistic. Hank Paulson, in a speech confirming that no second stimulus plan would be undertaken, believes the $152-billion stimulus plan could create 500,000 jobs this year. Americans would have to spend their money wisely for the plan to have maximum impact. But what if the rebate money is already owed?