Simon: Bear market proves "privatizing" a bad idea

Syndicated columnist Roger Simon writes today on the Orange County Register's op-ed pages that the recent bear market, bankruptcies, buyouts and government takeovers prove that investing in the stock market is a bad idea, especially for private accounts in Social Security.

But private accounts in Social Security should be allowed to invest in U.S. Treasury bills, notes and bonds -- at the option of the private account owner. Investing in equities should be allowed too. From 1926 to 1977, a period that includes the Great Depression, common stocks yielded a real average rate of return of 8.7 percent, according to Ibbotson and Sinquefield. There is no reason not to expect the same or a better rate of return for the next 50 years.