Economy

$2 Trillion in Retirement Accounts Lost

Posted by Matt Ortega on October 7, 2008 at 05:20 PM

This afternoon, the Associated Press reported that retirement accounts have lost $2 trillion in the last 15 months.

Americans' retirement plans have lost as much as $2 trillion in the past 15 months, Congress' top budget analyst estimated Tuesday. [...]

As Congress investigates the causes and effects of the financial meltdown, the House Education and Labor Committee was hearing from retirement savings and budget analysts on how the housing, credit and other financial troubles have battered pensions and other retirement funds, which are among the most common forms of savings in the United States.

"Unlike Wall Street executives, America's families don't have a golden parachute to fall back on," said Rep. George Miller, D-Calif., the panel chairman. "It's clear that their retirement security may be one of the greatest casualties of this financial crisis."

Yet, John McCain stlil wants to privatize Social Security.

And while Sarah Palin is in Florida promising that John McCain will "protect' entitlement programs, his economic advisers are telling the press that there will be massive cuts into Medicare and Medicaid. Perhaps she hadn't read in the newspapers her what her campaign wants to do just yet.

Comments (13) «

The Republicans are still operating from a stealth campaign mode. They can't say what there real agenda is because it will sink them.

1
SandyH on October 7, 2008 at 06:49 PM

Of course the GOP will take care of us through this crisis. Look at how well they've done over the past eight years. Heckuva job, Mr. President, heckuva job.

2
BobVADemocratHawk on October 7, 2008 at 08:19 PM

test

3
MattOrtega on October 7, 2008 at 08:48 PM

John McCain is the worst choice for president in any election in the past forty years.

4
hillcountry12 on October 7, 2008 at 08:51 PM

mcmoney doesn't worry. ? houses, 13 cars, new wife worth? mcmoney reminds of that ol' magazine called MAD and that icon who said, "what me worry?"

5
america1st on October 7, 2008 at 09:00 PM

A very small piece of those 2 Trillion was mine.

I have spent the last 22 years of my life saving for retirement in a 401K.

Today 33% of all that money is gone!

I voted early and I voted OBAMA. And, I hope and pray that the rest of those who are in the same 2 Trillion pile of ashes will vote OBAMA too!

6
Julio on October 8, 2008 at 06:32 PM

A very small piece of those 2 Trillion was mine.

I have spent the last 22 years of my life saving for retirement in a 401K.

Today 33% of all that money is gone!

I voted early and I voted OBAMA. And, I hope and pray that the rest of those who are in the same 2 Trillion pile of ashes will vote OBAMA too!

7
Julio on October 8, 2008 at 06:33 PM

A FINANCIAL RESCUE PLAN - OBAMA TAKE NOTICE

Now is the time to demonstrate to the American people leadership and an effective plan to address the financial crisis.

Following are components of this rescue plan:

1) ADD IMMEDIATE LIQUIDITY: Invest in America's Banks.
As announced today in the UK, provide liquidity by supporting the banks through obtaining shares of their stock, and to ultimately protect taxpayer's investment.

"The (UK) plan, combined with co-ordinated cuts in interest rates on both sides of the Atlantic, represents the boldest effort yet to ease concerns about the strength of banks' capital reserves, end fears they might run out of short-term funding, and encourage them to commence long-term loans to each other.

"In short, the British government is trying to restore the essential quality of any banking system: confidence."

This is the fastest and most efficient path to address the banking crisis. Taxpayers will receive stock which may be sold later...or, the ability to be paid back over time.

2) Announce a $300b infrastructure improvement program to rebuild roads and bridges across the country. It's the most direct way to boost the economy with lasting positive impact. (A stimulus package, on the other hand, will result in purchases of Chinese products while ignoring America's drastic need for infrastructure improvements. States cannot afford such an investment.)

3) Announce your economic team once elected, including your Secretary of Treasury.

8
Dunkling on October 8, 2008 at 07:09 PM

A FINANCIAL RESCUE PLAN - OBAMA TAKE NOTICE

Now is the time to demonstrate to the American people leadership and an effective plan to address the financial crisis.

Following are components of this rescue plan:

1) ADD IMMEDIATE LIQUIDITY: Invest in America's Banks.
As announced today in the UK, provide liquidity by supporting the banks through obtaining shares of their stock, and to ultimately protect taxpayer's investment.

"The (UK) plan, combined with co-ordinated cuts in interest rates on both sides of the Atlantic, represents the boldest effort yet to ease concerns about the strength of banks' capital reserves, end fears they might run out of short-term funding, and encourage them to commence long-term loans to each other.

"In short, the British government is trying to restore the essential quality of any banking system: confidence."

This is the fastest and most efficient path to address the banking crisis. Taxpayers will receive stock which may be sold later...or, the ability to be paid back over time.

2) Announce a $300b infrastructure improvement program to rebuild roads and bridges across the country. It's the most direct way to boost the economy with lasting positive impact. (A stimulus package, on the other hand, will result in purchases of Chinese products while ignoring America's drastic need for infrastructure improvements. States cannot afford such an investment.)

3) Announce your economic team once elected, including your Secretary of Treasury.

9
Dunkling on October 8, 2008 at 07:30 PM

I am very concerned about this bailout business.
I understand there is nothing that can be done about the Wall Street bailout anymore. I hear things like “put those thieves in jail†referring to the people that took advantage of the money from real estate derivatives and the like but I think it would be better to hung them from their feet and see what could be recovered from the change that comes out of their pockets.
People’s retirement accounts will suffer even further if more money is used to give distressed homeowners more money still. A plan should be studied where homeowners, facing foreclosure, partner with investors in a way that benefits everybody. For instance, said homeowner can afford only X% of the property he occupies then calculations could be made of the value of the property in ten years period, including maintenance, debt service costs, rent of a comparative property in the area, inflation or deflation, then factoring those numbers everybody contributes in a percent basis.
This way the present owner has an incentive to keep the property buying his partners out, eventually.
The Federal role could be to administer the program and provide incentives for prospective partners in the form of tax credits, instead of granting some homeowners a sizeable amount of cash giving him or her, with the resentment of other tax payers, what probably be undeserved, for in the best case scenario, this homeowner was only a pawn in the banking industry scheme.
The partner investor would create a market “needed in these economic conditions†and preserve much of the real estate perceived values, for properties won’t be flying towards the auction swap market. For that role, the investor gets a reward at the time of market recovery.

10
miretiro on October 8, 2008 at 08:36 PM

Retirement plans, mine included, have been hurt. The pitiful thing is all the blame storming. Retirement plans will be completely destroyed by ANY tax increase in a new administration. It is abundantly clear that the crisis was recognized several years ago by President Bush and Senator McCain; legislation to try to fix it was stalled by action, or inaction, of the Democrat vote block in the Senate in order to continue to spread welfare by supporting unqualified Freddie and Fannie loans - our crotch holding, flag and country disrespecting candidate was part of that failure to take action shen he could have. That is if he was even present, much less voting any way but t97% the way Pelosi and Reie did like a good litlte junior sheeple.

BTW, the more we hear out here, the harder it becomes to support the Party. So time to go for honesty nad full disclosure.

Why is it that all we hear is the canned spew about more people getting a tax break than pay taxes (ttrust us). Why cna't the Party stand up and say exactly what tax will go up and what will go down instead of putting up everything on bumper sticker mindless hype and teh candidate has already a changed/lowered base line form 250K to 200K - clearly stated change by the Party candidate during the "debate". Curiosity is a terrible thing - how much lower will it go since in only a few weeks it has gone down $50,000.

Be fair - go to the polls and vote against all incumbents - let's clean House (and Senate) as fast as we can. Impose term limits by vote since the congress will not do it right.

Any citizen voting for an incumbent is like an ant voting for an ant eater.

Vote as if your future and freedom depend on it - because it does. Now, go do the right thing and vote for a candidate with more than a just few years political experience as the only thing on his resumee. Send a message to the Party that we need more than a model in a nice empty suit.

11
SableB on October 19, 2008 at 08:32 PM

People,

Don't fall for these half-truths designed to persuade you into a big Government agenda.

What is your alternative to market investments for retirements? Social Security?

1. Do you people know that the average rate of return for someone retiring now at 65 is 0%. That's right 0% return. You have been paying 12% (6% by employee and 6% by employer, but employer contribution is an illusion, you are really paying for it). If you invested that amount of money in stocks for say 30 years, even if there were depressions and collapses, you'd still get a much much higher return then 0%)
2. The Social Security Insurance program was a scam from the start. It's not an insurance, it's a tax where young working people are paying older retired people. It is actually a pyramid type scheme (illegal if it were private). as long as there are more working people then retired, you can get away with it. Now that the baby bloomers will retire, we will be out of money.
3. The surplus money that was paid in to social security up until now, was borrowed by congress to other expenditures. This is why Social Security is broke. The Government owns Trillions to Social Security on top of the national debt. It's all an accounting trick: borrowing money that is not reported as debt.

The current financial Crisis is a result of a very bad monetary system and banking system. I'm sorry, but it is quite shameful to hear all of the Democrats blame free markets, when all of this mess has everything to do with government controlling our credit and the banking system. What do you all think the Fed is? All of our money is basically at its mercy, and banks are at its mercy. These accusations against Capitalism and free markets remind me of the accusations against Jews in the 20's in Germany.
People! Don't misunderstand me. I am NOT a conservative! But you can't believe everything the public officials tell us, or their well paid experts, or even the former FED chairman. What did you expect? That they take blame for all of this.

If it were a free market, none of this would have happen, and none of us would have lost all of this money.

It seems that all who are benefiting from all of this is Government and big banks.

Why does it seem that the Democrats are more committed to bailing out private companies then even the republicans. Is it fair that people are now being laid off and may not be able to provide for their children still pay for bail outs of a select group of other workers like in the Auto Industry?

Before we give up more of our economic freedom to more government control, I think it is worth to learn a little more about what is going on. If any of you are more interested in learning more about the sound economics on the matter, check out www.mises.org, which is the center for Austrian economics.

12
D5D on November 10, 2008 at 10:31 PM

People,

Don't fall for these half-truths designed to persuade you into a big Government agenda.

What is your alternative to market investments for retirements? Social Security?

1. Do you people know that the average rate of return for someone retiring now at 65 is 0%. That's right 0% return. You have been paying 12% (6% by employee and 6% by employer, but employer contribution is an illusion, you are really paying for it). If you invested that amount of money in stocks for say 30 years, even if there were depressions and collapses, you'd still get a much much higher return then 0%)
2. The Social Security Insurance program was a scam from the start. It's not an insurance, it's a tax where young working people are paying older retired people. It is actually a pyramid type scheme (illegal if it were private). as long as there are more working people then retired, you can get away with it. Now that the baby bloomers will retire, we will be out of money.
3. The surplus money that was paid in to social security up until now, was borrowed by congress to other expenditures. This is why Social Security is broke. The Government owns Trillions to Social Security on top of the national debt. It's all an accounting trick: borrowing money that is not reported as debt.

The current financial Crisis is a result of a very bad monetary system and banking system. I'm sorry, but it is quite shameful to hear all of the Democrats blame free markets, when all of this mess has everything to do with government controlling our credit and the banking system. What do you all think the Fed is? All of our money is basically at its mercy, and banks are at its mercy. These accusations against Capitalism and free markets remind me of the accusations against Jews in the 20's in Germany.
People! Don't misunderstand me. I am NOT a conservative! But you can't believe everything the public officials tell us, or their well paid experts, or even the former FED chairman. What did you expect? That they take blame for all of this.

If it were a free market, none of this would have happen, and none of us would have lost all of this money.

It seems that all who are benefiting from all of this is Government and big banks.

Why does it seem that the Democrats are more committed to bailing out private companies then even the republicans. Is it fair that people are now being laid off and may not be able to provide for their children still pay for bail outs of a select group of other workers like in the Auto Industry?

Before we give up more of our economic freedom to more government control, I think it is worth to learn a little more about what is going on. If any of you are more interested in learning more about the sound economics on the matter, check out www.mises.org, which is the center for Austrian economics.

13
D5D on November 11, 2008 at 12:11 AM


« Hide Comments


Post a comment

Thanks for signing in, . Now you can comment.
(sign out - change name - manage account)





You are viewing a mobilized version of this site...
View original page here

How do you rate mobile version of this page?

Mobilized by Mowser Mowser