To: davesd who wrote (26704 ) 3/15/1998 12:18:00 PM From: Knighty Tin Read Replies (1) | Respond to
Dave, The key is, there won't be all that 401K money as the folks who currently are putting money aside for retirement lose their jobs and even draw down 401ks, IRAS, Seps, etc. to pay the bills they have accumulated for crap they can't afford. The retirement money is a symptom of the financial bubble. Once the bubble pops, it disappears quickly. The Baby Boomers simply cannot have a comfortable retirement. There are too many of us. The enonomy cannot support that many unproductive folks who are living longer because they take Ginkoba. -g- The retirement money will either disappear from a huge increase in unemployment, an inflation that makes it woefully inadequate (least likely), or financial markets that make people think of 6 pct. govt. backed CDS as "the good old days." Or, most likely scenario, a little bit of all of the above and a whiff of deflation in the assets we hold. Since most of this buying is debt-enabled, a rise in rates would zap a lot of the retirement nesteggs on to the ground with the subsequent cracking of the shells. I know, that's a bad yolk. -g-
