|The ERON affair brings
a number of issues in
focus, which are inter related and will
urge us to solve imperfections of retirement
vehicles such as 401 K's etc., just as
the 9/11/2001 disaster urges eradication of terrorism.
The ingredients of the analysis should
include the by candidate G. W. Busch proposed 2%
self managed part of SS Tax, and so fervently
discredited as a "risky schema".
The Chairman Greenspan's "irrational
exuberance" qualification of the stock
market levels, consecutively following by Fed. Reserve Board interest rate
increases and slow following decreasing after:
the burst of the "dot-com" bubble.
The California pseudo energy crisis.
The fallen fuel prices as result of the
9/11/2001 attack, with the following reduced
traveling and use of fuel and decreased
profitability of the airline companies.
One more factor: the unconventional accounting
methods the tech companies where
lured into: includes some of the stock
To avoid the discrepancy between what management
can do with their stock interest and the employees can do with theirs in
retirement account containing stock interest, the same regulations has
to be made, just like the congress was made to follow their own laws: "what
is good to the goose is good for the gander" rule.
To be continued.