Of course, Moody’s investor’s services hates the idea.

I will make a note on the bigger picture: When Argentina privatized its pension system over a decade ago, it set the stage for its brutal economic implosion in the first place, because it stripped the government of all reserves in the process.

In response to the reports of the plans the Argentina markets dropped like a stone (13%).

I will note Brad Delong’s blog, and this quote:

The private retirement system, set up in 1994 to help bolster capital markets, owns about 5 percent of companies listed on the Buenos Aires stock exchange and 27 percent of shares available for public trading, data compiled by pension funds show.

The market crash was inevitable. It would either happen now, or when the population cohorts start sellling stocks when they retire.

This should have been done sooner.