I’ll skip the usual political commentary and comparison of supposed high office politician “plans” and focus on what is really happening based on my understanding.
The events of the past thirty days or so have resulted in significant withdrawals from the stock market including massive withdrawals from money market and mutual funds. While most of those funds may have been shifted to Treasuries, CDs, and other instruments offering relatively safe investments, it doesn’t take much forward thinking to understand that people from all walks of life are concerned about their financial futures.
How serious is this situation? A friend who is a heavy hitting stock market player with a solid track record made a statement last week that caught my attention: “If the DOW drops to 4,500 or 5,000, most of the 401K investments will have been virtually wiped out.” If that is the case, what will people do then?
Instead of the usual political banter, I have to question why the seriousness of the ongoing economic collapse and related stock market implosion aren’t being discussed in more meaningful terms on all economic blogs.
I see no reason to listen to any politican or hack who recommends staying invested in this stock market with existing portfolio packages unless one has the stomach and intention to suffer through what may be a very long hike up the investment trail.
Meanwhile, people have bills to pay while trying to figure out new budgets and future plans. And those tasks may become immense as the developing situations unfold.
Maybe we should talking about these issues…
Lifted from comments Movie Guy