Retirement Savings Lose 2 Trillion Dollars Over Last 15 Months

I think the most horrifying words I have been reading in the past months is the words telling people to get out of the stock market.  It is disconcerting to read or hear those when I know most Americans have a large majority of their retirement savings tied up in 401k packages, because they were the only way to save for retirement without getting stuck with paying higher taxes on them. IIRC they can only be switched once a year.  The owners already pay fees on the plans which reduce the money saved.  And I've always figured that the managers were probably using the stocks for short selling anyway.  I mean what person or business who was in control of some stock would knowingly lend it to a short seller.  You would be very likely to lose, unless you had inside information that the shorters hopes would be dashed.

The 2 trillion above includes all kinds of retirement plans (excepting "golden parachutes" as Rep George Miller D-CA notes in the report linked above) 401ks, defined benefit, and defined contribution styles. 

The Post notes that with the old classic defined benefits which no one, but high level executives and government workers seem to have these days, the Post notes that someone will still have to pay to make up the shortfall between what is left after the stock market is finished descending, and what is needed to cover them. Either the consumer, the worker, or the shareholders. Since most executives have a lot of stock in their own companies, I doubt the latter will get stuck with much of the bill at all.

For more read Washington Post report "Retirement Savings Lose $2 Trillion in 15 Months" (not that there is much more except for explaining how deeply screwed we all are as the hit on retirement 'savings' will cause people to stop people from spending in a nation that is almost entirely dependent on consumer consumption for it's economy)  I will look for a usenet copy for those who can't get in because of lack of registration.

Interesting how this global depression came about even though we were assured that globalism would stop depressions from developing. You know how they wailed that protecting our jobs at home would cause something like this.  Liberal programs would cause something like this.  Well the first Great Depression started at the end of a long era of an ever widening gulf between rich and poor (and with repercussions from WW1 still lingering).  Now we've had another long period of widening gap and a war that lasted longer and cost more than WW2.

Boy, is that ever an argument for peace and equality.  Lets change the old chant around to

"No Justice, No Peace, No Money"!  

Maybe that will get the attention of the greedy and the racist people that have been propping up the Bush administration and other Republicans for so many years.

tags: 401k  retirement savings  social security  golden parachutes  

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