Quote from Susannah:
This is a tax by another name. Let the Social Security administration run it and invest in bonds? In other words, let us continue our reckless spending and use this new money to do it. And, I'm so sure when we get ready to retire both the Social Security system and this system will both be functioning, ha! What percentage of our money are we going to be left with soon? Guess it won't matter, we'll all get that $600 credit that will oh so make up for this new 5% tax.
Why not just quit perpetuating the myth that stocks always go up and you can't oversaturate people with growth. I mean, when you have almost all consumers in debt keeping up with the Joneses and some of the most popular magazines having to do with decluttering and organizing your growing piles of crap, you think something might have become systemically broken? You think?
I don't usually rant, but it felt good to get that out.
Quote from saliva:
LOL! You definitely deserve our standing ovation.
Quote from stock_trad3r:
Um this is not japan. Stocks always outperform. Always. If you keep money in the bank expect 1% yearly interest at best. Although the S&P 500 may be flat since 1998 it does pay nice dividends which aren't factored into the chart.
Quote from IShopAtPublix:
I guess abstract thinking is not your strong suit.
There are many reasons that contributed to the robust growth of the US stock market during 20th century and those are the precise reasons why it is highly unlikely to repeat in the 21st century.
I already outlined macroeconomic reasons but there are also revolutions in the way people trade (electronically and virtually instantaneously), the size (no more discrimination of odd vs even lots), the price structure (the boom in discount brokerage) and the general level of interest and participation in the markets (virtually half of US households are invested in the markets one way or the other) Coupled with 401(K) &Mutual Funds pumping dumb money into the stock market and you get some robust growth. All of it creates plenty of money making opportunities for people around the markets (old adage of selling shovels instead of digging for gold) and for a tiny slice of people who know what they are doing.
The jig won't last forever though. At some point people will realize 401(K) is a scam.
Quote from IShopAtPublix:
No, that would be an oversimplification. Even in the 20th century (which can be safely named the American century) there were extended periods of time when dow did NOTHING(1964 to 198 something). If you take into account that 20th century was also a period of considerable, unprecedented (and unlikely to repeat) growth for US economy you will quickly realize that it would be foolish to expect the same performance in the 21st century. Nikkei is a good (recent) example that markets can do nothing for 20 years or more.
Well, my naive friend, you better then get out quick while your ass is still intact because there will come a time when we will all be drowning in a sea of monster inflation.Quote from clacy:
Let me say, that my investment (not trading) accounts are only about 50% in stocks. I went 50% bonds last year and I'm down about 5% for the year, so not too bad from an investment standpoint.
But to think that you're better off with the goverment stealing your money to go into treasuries at 3%/yr, is madness.
This is just one more way for them to get their hands on our money. How long do you think it would take before they started reaching into the "trust fund"?
I'll take an average of 10% (plus company match so effectively 15%) all day long over 3% and having the government piss away the money so that it has to inflate just to pay off my debt obligation.
Quote from saliva:
Well, my naive friend, you better then get out quick while your ass is still intact because there will come a time when we will all be drowning in a sea of monster inflation.