Greenspan Blew Chance to Fix Social Security

Investing our Social Security money in government bonds instead of the stock market created a second problem as well.

It meant Congress could blow the money on pork, since these funds are co-mingled with other government revenue. And guess what? It did.

"All of the money that is going to support you and me is spent right now," says Dan Fuss, the bond fund guru at Loomis Sayles. Of Social Security's published accounts he says: "Don't believe 'em. The cash impact (of the funding shortfall) hits eight years."

"Congress essentially spends the money and issues a special form of IOU," says Pozen. He adds that the trust fund "exists, but only as intragovernment debt. Congress will have to come up with the money."

Naturally, IOUs issued by Congress are never actually paid by Congress.

Who will have to pay them off? You got it.