Stop Me If I'm Borun

Originally Posted by Basil C P Borun

After ten years of financial instability during which the value of Superannuation funds has dramatically decreased and the long-term return has fallen to just 3.6%, it is incredible that the government has done nothing to balance or offset the fiscal irresponsibility of the Market. This in and of itself is irresponsible given it was the government (aka Paul Keating) that mandated the sequestration of an ever-growing percentage of our incomes in said funds without imposing any safeguards on the funds and their management.

The mindless mantra "Let market forces prevail!" was predicated upon the assumption that these "forces" were rational and, possibly, conservative. Time and tide have proven this to be baseless and we have all suffered as a consequence. Retirees and those rapidly approaching retirement are looking towards a bleak financial future that will see the majority becoming a "burden" on our already fragile and abused welfare system.

It seems to me that it behooves the government to intercede on behalf of the powerless--and that includes everyone but merchant wankers, funds manager and self-managed superannuation fund managers--to ensure that a minimum proportion of funds be invested in more stable financial instruments. One example that comes to mind is Australian Government Bonds, especially as we are constantly bombarded by claims that our fundamentals are basically sound. Such a restriction could provide more stability to the market as well because Funds Managers would not have the anywhere near the power to skew the market that they currently enjoy nor would they have the freedom to squander our hard-earned monies at their whim or wish. Investing, as has been demonstrated over the last decade, is neither a science nor an art. It is the domain of the financial bully and the greedy driven by short term goals and not our best interests.

What we need is to speak up and let our politicians know that we are not satisfied with their selective laisez faire attitudes towards our real concerns. Put issues of climate change on the back-burner and address the issues of our survival into and through old age. Once our futures are assured we will have the freedom and security to consider more altruistic concerns.