More on the Economic Cascade Failure

[dalonzo9]

http://www.msnbc.msn.com/id/26884523?GT1=43001

Thus, the House voted 'gainst the 700 billion dollar bailout

Comments

[frugee]

The plan outlined on the msnbc.com link sounds an awful lot like a bailout maneuver to me without owning the debt.

You know I feel uneasy about it but wish it had passed. I realize that the Fat Cats stand to lose/profit the most, however, just to put things in perspective, I checked my very moderate 403(b) after the news, and I am down 17.9%. Yeah. I feel as though if someone doesn't do something, all confidence in the stock market will fail, and pensions are non-existent anymore. All of those my age will take a huge dent to any retirement plans. The only way to grow steadily is in a thriving market. Stocks yield the highest return. That said, I'm going to yank all contributions for next year. Why throw more money into a hole? I'll leave what I have there (a pittance) and just save the rest in a bank. Once everything hits rock bottom, the only place to go is up, however, I feel like this was very very bad for the country. The whole lack of monitoring for 8 years was disastrous for the country and economy.

Yes, a bunch of foolish people signed mortgages they had no business signing. A bunch of greedy banks only thought as far as immediate payments. Now after the trickle effect, those of us who don't want to live with their mothers forever and want to be able to afford to stop working before age 80 are shit out of luck. Let's face it, Social Security is not going to survive another 10 years.

[dalonzo9]

It also involves a heck of a lot less funny munny/fun bucks being tossed into the fray, which would drive inflation up, up, up.

I do feel terrible about the 'Gen X'ers who are going to end up suffering a lot from this. I think we're looking at seeing the working age of the average US citizen going up. As a 'Gen Y'er and overall pessimist, I never had faith in retirement plans outside of mine own savings. I also feel bad for the older folks who are far too old to just pull themselves back up from their bootstraps like we young'uns can. Then again, I generally reserve nothing but contempt for 'Baby Boom'ers because of all their broken promises to our generations.

I said it somewhere else before (possibly in your entry about this) but I have two gripes: living communally (because I want to live alone) and waiting in line for $30 bread. Although, living alone on next-to-nothing was what I was looking at anyway....

[frugee]

On the whole--and I hate to think that my Mother would have to work until age 80--I think the retirement age should be increased. The Social Security system was designed with a retirement age around 65 (then lowered) because that was the average life expectancy at the time.

I just watched my Grandmother receive excellent free care because the system was designed to nurture its poor elderly, and I am very grateful for it, but think of the number of relatively healthy boomers who are going to eat up Social Security within 10 years....My Mother has a dozen friends who have all retired between ages 55-65, and I think it is almost unimaginable that these folk will live another 30 years without earning income. I know that the body fails and at some point people can't continue to work. I also believe that people should be able to enjoy some of their "Golden Years," but 30 years might just be too much. I am a full proponent of raising the age that people should have to work to receive Social Security.

Pensions are a different beast. If they are self-sustainable, let people retire whenever they want, however, bear in mind that too many people taking money without enough fresh blood pumping new money into the plan is always a non-functioning idea.

Social Security is going to implode.

I don't think I could do the same job for more than 30 years, however, I could do something else, even just part time. I take my Mother's philosophy--I just think I would get incredibly bored. I'd have to have at least a part time job. I might even volunteer. My Mother won't. ;-) *puffs cigarette* "Screw that, I want to get paid!"

I am also a proponent of saving a lot, if for no other reason at this point than to keep the money relatively fluid. I want to have access before I am ready to retire, and I want to buy a house. The fact remains, however, that I am making a whole 0.15% interest rate at this point, and companies don't match your individual savings--only your retirement. I know it is my own risk to invest and take that option, however, I need to be able to afford to retire with more than the $3 in interest I will make this year.

< / diatribe> ;-)

[dalonzo9]

Yeah, increasing life expectancy is tugging hard at all the retirement angles. I agree, 30 years seems like a heck of a long time.... 'Tis such a tough thing, because the mindset is that we work hard in order to eventually relax. I can't imagine anyone working well into their 80s. That just seems cruel and unfair. Want we really to live to 80 (or older) and work even longer? However, I suppose if the quality of life increases with life expectancy, perhaps it won't seem so bad.

I like pensions the best but the only sustainable ones seem like the military or government funded ones.