Subject: RE: Greenspan, Private Investment, and Zero Sums
spoken favorably about the Chilean system.>
With all due respect, Mr Greenspan has zero experience in the pension world. The Chilean system has virtually collapsed as I noted elsewhere.
Mr Greenspan should stick to his running the Fed.
Pensions are like many complicated things in this world--experience counts for virtually everything. They are first and foremost a very practical system---what is the best way to provide pensions to people without spilling any money---and how to you do it in the most cost-effective and responsible manner?
There is only one answer to that: defined benefit pensions--like those in the real world outside Washington DC.
And there is plenty of experience out there. All you have to do is go outside the beltway and ask pension consulting actuaries who work mostly for large clients.
Do not ask insurance actuaries, or people who claim to be actuaries but accept commissions, and do not even ask small plan actuaries.
And do not ask academics or think tank experts, accountants or economists either. They will not have a clue.
Ask people that do it for a living, paid by the hour, independent of the finacial service community, and have done it for a long time.
