THE BLOG
04/07/2010 05:12 am ET | Updated May 25, 2011

Outrageous, But Legal: Social Security Ponzi Scheme Needs a Bailout

This is the start of a new series, Outrageous But Legal. I encourage you to join in the fun and email me the link to anything you consider to be "outrageous, but legal."

Outrageous...

Social Security is simply one big Ponzi Scheme. So long as the population is shaped like a triangle, the worker bees send money up the pyramid to the retired bees. Unfortunately, the age of populations does not always look like a perfect triangle where there are more young people to take care of the elders. Such is the case in the US with the Boomers reaching retirement age.

The Congressional Budget Office has released a report showing that Social Security is spending more than it is taking in. Rather than deal with this inevitable issue years ago, lawmakers have chosen to kick the can down the road -- and today is where that road ends.

So, like every other Ponzi Scheme, Social Security is beginning to submerge underwater like the Titanic. Get ready for another bailout of government ineptitude.

...But Legal!