>-A matching assumption that the entire Social Security program
could be financed through the stock market, if the nation chose
to do so. While this is hypothetically possible, if we could
tolerate having seventy to ninety percent of the stock market
owned by Personal Retirement Accounts, it's not realistic.
Can you go into this a little more?
Seems that even under individual private accounts, what I've heard is that there would likely be use of government bonds for a significant part of the portfolio. My recollection is that even under the Chilean privatized system a significant part of their individual accounts is government bonds.
In addition, depending on how the privatized system is set up (e.g., through a carve-out of a large percentage of current payroll taxes resulting in system savings by means testing current benefits of affluent recipients) a privatized system may in large part shift ownership of stocks from affluent current retirees to the retirement accounts of current workers.
