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But nowhere in the document does the GAO suggest investing some of the $2 trillion Social Security trust fund in the stock market — something every other pensio
by ilamont 3y ago
But nowhere in the document does the GAO suggest investing some of the $2 trillion Social Security trust fund in the stock market — something every other pension plan in the U.S. and around the world does.
Is this true? Some nonprofit boards are so risk-averse they will only invest in the lowest risk investments, typically bonds and money market funds. On the other end of the scale, we've heard of some pension fund LPs investing in whatever high-risk garbage VCs push their way, such as funds in Ontario and Alaska investing in FTX after Sequoia gave their stamp of approval (https://decrypt.co/114235/ontario-teachers-95m-ftx-pension-fund-limited-impact https://decrypt.co/114235/ontario-teachers-95m-ftx-pension-f...).
- landemva 3y agoFTX investments, err donations, were unregulated and not listed on a regulated exchange. Big brains took SBF's bait and maybe got to rub shoulders for a moment.
- Terr_ 3y agoAlso even if Congress ensures it's legally possible, investing the surplus into the general stock market leads to two issues: 1. The money vanishes at the moment you're most likely to need it, during a national economic crisis. 2. Now the US government is in some manner "picking winners and losers", even the most algorithmically-conservative index-fund focus still embeds some assumptions.