In the February 14 Newsweek, George Will writes a screed against the Democrats (not the Republicans) who oppose the Administration’s plan to "save" Social Security by ending it.
The crux of the Democrats’ objection, he says, is this: "Equities markets are terribly risky – indeed, are as irrational and risky as roulette."
Noting that roulette has no element of skill, Will claims to be amazed that Senate Minority Leader Harry Reid would compare "America’s capital markets, which are the foundation of the nation’s economic rationality and prosperity…" with that game of chance.
Years ago, I covered Wall Street for Financial News Network and briefly, CNBC. The most respected stock analysts and market experts told me that "America’s capital markets" are casinos. They felt their experience and tools improved the odds, but recognized that they were, in fact, gambling.
Score one for the anti-Will side.
But Will's screed has lots of holes. He neglects to mention the House odds …er, I’m sorry….the stock and bond markets’ regulations and schemes that give them the edge over John Q. Investor.
Nor does he mention that Wall Street has been rife with good, old-fashioned corruption from the days the traders sat under a tree in little old New Amsterdam.
Reid, mind you, also was wrong. Investing is not just gambling. It’s gambling in a den of thieves.
Which doesn’t mean you shouldn’t put money into the markets. I do. But like any wise gambler, I use dollars I can afford to lose. And I bet very, very carefully through two atypical and (thus far) honest mutual fund companies.
That’s very different from diverting Social Security taxes to the fine, upstanding folks at Merrill. Lynch.
There is more in Will’s Newsweek column to dispute, but why go on? Yes, Will writes a column or two each year promoting classic conservatism. Mostly, however, he shills for the Republican Party, hardly a conservative organization. Or, he promotes corporate America, whose operations subvert conservative values like family, prudence, hard work, discipline, persistence, traditional morality – every day of the week.
I wish William Safire would un-retire.