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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Steve K who wrote (80327)	5/2/2000 12:03:00 PM
From: pater tenebrarum	Respond to of 132070

SK, well, the average 401K is used as collateral for debt amounting to 50% of the value of the outstanding 401K assets. of course the value of the collateral is not fixed...it fluctuates with the stock market. the amount of debt alas remains the same. add to this the deeper question if buying stocks is really a form of savings...you could after all have made the same argument in '72, just before the second worst bear market of the 20th century began. household investments were predominantly concentrated in the stock market, while the savings rate had steadily declined. both trends were at extremes, which subsequently led to a violent reversal. which was actually my point. regards, hb