Tippet; I read a very good article on Japan some time back, and
it dealt with this, in respect to "one" of the major causes of
their melt down but it took time for the effect to hit them.
They cut their birth rate down dramatically , years ago, and over
time the "ratio" of people going on retirement/to coming into
the work force, gravitate towards the retirement ratio getting
more and more higher. I don't mean it was actually higher, only
that it went up percentage wise over a 10 year period, at a
faster and faster rate and started causing more money to come
out each year changing the balance of inflow/outflow to their
market from one that could push the market up.
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This was sort of sneaky, but they now have a higher percentage
of retirees than any nation in the world, a 3-1/2 % unemployment
really hurts them more now than a 5% did during the boom days.
We are facing the same thing in the future, as generation X
moves to retirement age.
They can talk about SS being in trouble in 2025, and try to get
it into the market, but that's not a cure, it only
made things worse in Japan, as they did what equates
to that. It's simple the market can't support more and more
retirement, and more and more pencil pushers & broker/salesman
on and on and on, the back bone of it get ostio arthritis.
Then like an old man, one day he bends over and can't get up
and has to go to the doctor and get a shot of something to
keep going, looks like GreenSpam is already administering us
a few old age shots. Not just the rate cuts, look at the
increase in search.news.yahoo.com
Jim
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