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| Italy privatizes part of its social security program - ooops https://www.worldofkj.com/forum/viewtopic.php?f=48&t=48177 |
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| Author: | Beeblebrox [ Fri Jan 09, 2009 10:32 pm ] |
| Post subject: | Italy privatizes part of its social security program - ooops |
http://www.bloomberg.com/apps/news?pid= ... refer=home Italy did for retirement financing what President George W. Bush couldn’t do in the U.S.: It privatized part of its social security system. The timing couldn’t have been worse. The global market meltdown has created losses for those who agreed to shift their contributions from a government severance payment plan to private funds meant to yield higher returns. Anger is rising both at the state, which promoted the change, and money managers such as UniCredit SpA and Arca Previdenza, which stood to profit. Prime Minister Silvio Berlusconi’s administration is now considering ways to compensate as many as 1.2 million people who made the switch, giving up a fixed return for private plans linked to financial markets. It’s also letting people delay redemptions on retirement funds to avoid losses after Italy’s benchmark stock index fell 50 percent in 2008, destroying 300 billion euros ($423 billion) in wealth. |
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| Author: | Box [ Sat Jan 10, 2009 12:07 am ] |
| Post subject: | Re: Italy privatizes part of its social security program - ooops |
Italy's government is fucked up, always had been, probably always will be. |
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| Author: | Caius [ Sat Jan 10, 2009 1:43 am ] |
| Post subject: | Re: Italy privatizes part of its social security program - ooops |
The article says people agreed to do this. That is the same way the proposals would work in the U.S. Its not as if they were forced. |
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| Author: | Beeblebrox [ Sat Jan 10, 2009 6:22 am ] |
| Post subject: | Re: Italy privatizes part of its social security program - ooops |
Caius wrote: The article says people agreed to do this. That is the same way the proposals would work in the U.S. Its not as if they were forced. So these numbskulls pull their money out of a low-risk program and invest it in higher risk stocks. And lose their retirement benefits in the process. And now the government, which was trying to save a buck, has to come in and provide their retirement anyway. That's what would have happened if Bush and Republicans had actually gotten their way with SS. And guess who would have to come in the bail out the retirees. This kind of stupidity is exactly what SS is designed to project people against. That's why it's a bad plan. Getting rid of the safety net defeats the whole point of having a safety net. |
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