G.Shilling Social Security and Medicare Crisis

[valeriypi]

Social Security and Medicare Crisis: Expect Health Care Rationing and Later Retirement

Here's another thing for Americans to worry about: Social Security and Medicare are on the verge of bankruptcy and will collapse sooner than previously expected because of the current recession.

Unless drastic steps are taken, this means higher taxes, more government spending and possibly lower benefits - including a rationing of medical care - for retirees, says Gary Shilling, President of A. Gary Shilling & Co.

Specifically, the Obama administration on Tuesday said:

Social Security will start burning cash in 2017 and will have wiped out its funds by 2037, four years earlier than prior projections.
Medicare, which is already operating in the red, will be insolvent by 2017, two years earlier than previously believed....

http://finance.yahoo.com/tech-ticker