It will take a decade to play out, sort of gradual and then with a contortionist kind of pop at the end. There is really no way to avoid risk but there is a way to deflect risk to others or to postpone a pyramid collapse.

I look upon Bush's SS planned reform and vision of an “ownership society” by the 20-somethings as a plan to get new recruits to a pyramid scheme that needs a good flushing first.

Think Albania circa 1996. Just think that in response to the pending collapse of an obvious pyramid scheme that the government gave a tax break to new entrants. Who would benefit? Not the new entrants.

Investment Scams: Pyramid Schemes

When stocks return dividends of about 8 percent, rather than the current 2 percent, then it will be time for the stock market pyramid to start over. There is way too much illusion of real value to the prices of stocks and bonds and housing today.

The purpose of issuing big bonds as SS is given its eulogy is to provide an opportunity for the folks at the top of the pyramid to switch over to secure government bonds, which must be federal bonds rather than state or local government bonds, to ride out the collapse of the pyramid. It fits well within the notion of continued concentration and centralization of wealth into fewer and fewer hands. 20-something saps who have not studied enough old critiques of capitalism won't understand when they are being led to slaughter, economically.