Argentina set up a national retirement system back in the 90′s and I’ve read numerous reports on how wonderful it is because it helps Juan six-pack not worry about the future. The Government is looking out for those unfortunate people who don’t know how to manage money but want to retire one day. I wonder what Juan is thinking about that now?
Argentine lawmakers will try to block the government’s use of $29 billion in nationalized pension assets to repay debt when they consider President Cristina Fernandez de Kirchner‘s plan to seize the funds from private money managers.[via Bloomberg]
I know that in the US we borrow from Social Security and other entitlements to pay for overspending but we don’t seize funds from private money managers, yet. I wonder what would happen if Argentina’s financial system collapsed and Juan’s retirement account can’t be repaid? He’d be screwed.
