5 Myths of Social Security

Most lists have 10, but for some reason, things pertaining to Social Security contains 5. Here’s the Liberal’s “5 myths”, including this gem:

The Social Security Trust Fund isn’t full of IOUs, it’s full of U.S. Treasury Bonds. And those bonds are backed by the full faith and credit of the United States.

Here’s the conservative take.

Accounting that would be illegal for a private company is pretty hard to defend. The present value of the Social Security deficit is around $7 Trillion. I can see QE3 coming, as the Treasury will probably just issue more debt that will be bought by the Fed. Problem solved!

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About Eric Falkenstein 136 Articles

Eric Falkenstein is an economist who specializes in quantitative issues in finance: risk management, long/short equity investing, default modeling, etc.

Eric received his Ph.D. in Economics from Northwestern University , 1994 and his B.A. in Economics from Washington University in St. Louis, 1987

He is the author of the 2009 book Finding Alpha.

Visit: Eric Falkenstein's Website

1 Comment on 5 Myths of Social Security

  1. social security is gettin crushed, it’s a airplane with one engine out and the other turbine barely spinnin.crash landing is never fun

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