Largest Bond Fund Manager says Bush Social Security Plan won't work - Bloomberg.com: U.S.

Bloomberg.com: U.S.:

"Bill Gross, who manages the world's largest bond fund, said President George W. Bush's proposals for cutting a shortfall in the Social Security trust fund won't work.
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Gross, chief investment officer at Pacific Investment Management Co. in Newport beach, California, suggested instead that the U.S. cut its budget deficit.

``There's your problem, and neither privatization nor any goodly number of government bonds deposited in the Social Security trust fund can solve it,'' Gross wrote in a report published on the firm's Web site yesterday. ``The value of Treasury bonds and even stocks will be valued down in price as they are sold to pay for future goods and services.''" MORE...