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Video:60 Minutes - Those Who Are 401(k) Screwed & Even Unemployed; Wall Street Racket
- Thread starter ByLoSellHi
- Start date
Quote from ByLoSellHi:
All you need to know about Wall Street and its (lack of) integrity can be found in the video when Steve Kroft asks the 401(k) lobbyist whether his buddies support more disclosure of fees.
Sometimes, facial expressions, lack of ready-made answers, insincerity in one's eyes and stuttering.... speaks louder than fabricated responses.
The section of fees starts at about at 09:19.
The fees can eat up more than 50% of the value of a 401(k), not even mentioning market losses.
Slimeballs.
There are fewer younger people to replace the baby boomers who had a huge % of their savings in the markets and are crushed.
Will Wall Street find replacement suckers to compensate for those who will now tune out?
This is kind of like the cigarette racket - can they find enough new smokers to replace the ones who die of smoking related complications.
True, the very demographics that have been working for the boomers for so long will now work against them, especially if enough young people have now been put off investing their money in equities by the market gyrations of the last 10 years.
Quote from WaveStrider:
That 401K lobbyist guy came across like a parasite - which pretty much fits the subject matter.
It's funny how there is an entire industry built on folks who take a lot of fees and money as fund "managers", but when the loses hit, it's "YOU'RE responsible for taking care of your non-financial-industry job AND being a financial analyst, not me! I just take the fee!"
I'm wondering if that idea of converting Social Security over to self-directed would have helped - like moving $ from one Ponzi to another...
The stock market is really no different than Madoff, it requires new suckers to more money into it. Its pretty obvious no on in there twenties or thirties has enough money to keep this thing heading higher. The sp will probably head to 300 and sit there for 20 years.
I'm being serious here - in the U.S., from a demographic standpoint purely, there are about 1 persons under the age of 25 for every 3 baby boomers.
If those recently burned, and burned badly, who are great in number (much greater than what happened during the focused 'tech crash,' this is much more widespread), swear off equities (and they're past the point of prime year investing anyways, being in their 50s and 60s), and the 33% of young people who will replace those boomers are told not to ever trust the markets by observation or outright advice by their parents, uncles, aunts, etc., then don't we have a trust and integrity issue now that is - maybe larger than anything we've seen since the 1930s?
You literally have millions of Americans who have seen their retirement nest eggs wiped out, just at the time they needed that money most, and with a lack of hope that there will be a V shaped recovery in the economy or equity markets.
I forgot to add that they've seen their 1st or 2nd biggest asset - their home, drop precipitously in value, also.
If those recently burned, and burned badly, who are great in number (much greater than what happened during the focused 'tech crash,' this is much more widespread), swear off equities (and they're past the point of prime year investing anyways, being in their 50s and 60s), and the 33% of young people who will replace those boomers are told not to ever trust the markets by observation or outright advice by their parents, uncles, aunts, etc., then don't we have a trust and integrity issue now that is - maybe larger than anything we've seen since the 1930s?
You literally have millions of Americans who have seen their retirement nest eggs wiped out, just at the time they needed that money most, and with a lack of hope that there will be a V shaped recovery in the economy or equity markets.
I forgot to add that they've seen their 1st or 2nd biggest asset - their home, drop precipitously in value, also.
Quote from ByLoSellHi:
I'm being serious here - in the U.S., from a demographic standpoint purely, there are about 1 persons under the age of 25 for every 3 baby boomers.
If those recently burned, and burned badly, who are great in number (much greater than what happened during the focused 'tech crash,' this is much more widespread), swear off equities (and they're past the point of prime year investing anyways, being in their 50s and 60s), and the 33% of young people who will replace those boomers are told not to ever trust the markets by observation or outright advice by their parents, uncles, aunts, etc., then don't we have a trust and integrity issue now that is - maybe larger than anything we've seen since the 1930s?
You literally have millions of Americans who have seen their retirement nest eggs wiped out, just at the time they needed that money most, and with a lack of hope that there will be a V shaped recovery in the economy or equity markets.
You're exactly right. The boomers are sellers of assets for the next 15 years.
Quote from JamesVU2000:
You're exactly right. The boomers are sellers of assets for the next 15 years.
I forgot to add that they've seen their 1st or 2nd biggest asset - their home, drop precipitously in value, also.
We're living in unprecedented times, and there's a facade of normalcy that will be hard to keep up in terms of appearances.
First, it is truly sad to see those who are in their 50s plus take a hit like the one we have had. And, emotions can cloud your thinking when watching this video.
Second. Even my 401k has a multitude of investment options. They range from HIGH RISK to Asset protection. I was able to move my money when the first wave down started. I have not only recovered the loss but I am up 7%.
I took my mom's retirement, a year before the crash, and moved her into BONDS. I did this when we started to see the hick up around 14000 or so. She has preserved her gains of the last 40 years and is slightly up for this year.
I know plenty of people, who rolled out of the Stock Market during the first hard sell off, when only rumors of Banking troubels where whispered.
So, I do feel for those who rode this all the way down. However, they too are to blame. When the INDU goes from 14000 to 12000 and your still long......its your fault. When the INDU goes from 10000 to 14500 and you do not reallocate your holdings, and take some profit, move it to protection. Then , well it is your fault.
If you work on WallStreet or you part of the "Financial World" and you rode this market all the way down, then not only are you also to blame...but your also a idiot.
being down 20% after re-allocating your portfolio is better than having your head in the sand and being down 50%.
The markets will come back to some level. IMHO 10000 is the highest we may see for the next decade. But there are plenty of othere investment options other than the INDU.
Two problems I do see with 401Ks. Is they are "Long" only funds. The second, far to overweight in Small, Mid and Large cap stock funds. Hardly any Hard Assets Funds. Zero Currency Funds.
They need to widen the choices and not force everyone to be "LONG". That is the ultimate problem. And I doubt that will change.
Second. Even my 401k has a multitude of investment options. They range from HIGH RISK to Asset protection. I was able to move my money when the first wave down started. I have not only recovered the loss but I am up 7%.
I took my mom's retirement, a year before the crash, and moved her into BONDS. I did this when we started to see the hick up around 14000 or so. She has preserved her gains of the last 40 years and is slightly up for this year.
I know plenty of people, who rolled out of the Stock Market during the first hard sell off, when only rumors of Banking troubels where whispered.
So, I do feel for those who rode this all the way down. However, they too are to blame. When the INDU goes from 14000 to 12000 and your still long......its your fault. When the INDU goes from 10000 to 14500 and you do not reallocate your holdings, and take some profit, move it to protection. Then , well it is your fault.
If you work on WallStreet or you part of the "Financial World" and you rode this market all the way down, then not only are you also to blame...but your also a idiot.
being down 20% after re-allocating your portfolio is better than having your head in the sand and being down 50%.
The markets will come back to some level. IMHO 10000 is the highest we may see for the next decade. But there are plenty of othere investment options other than the INDU.
Two problems I do see with 401Ks. Is they are "Long" only funds. The second, far to overweight in Small, Mid and Large cap stock funds. Hardly any Hard Assets Funds. Zero Currency Funds.
They need to widen the choices and not force everyone to be "LONG". That is the ultimate problem. And I doubt that will change.
The irony is that some of us that already retired stare at the computer screen 6 and 1/2 hours every trading day, day trading , swing trading, trying to protect our funds and/ or make them grow. And some idiots (or maybe lobbyists) call us "parasites", claiming that we do not produce anything that benefits society.
Parasites or not, many of us here at ET took the initiative to learn and work hard on managing our earned savings.
I have compassion for those individuals on the video and millions like them. But it is not the end of the world.
Nobody knows if the worse is over, but better things are coming, as sure as the sun will be seen tomorrow. Cycles, up and downs... the up is coming.
Best!
From The Safe
Parasites or not, many of us here at ET took the initiative to learn and work hard on managing our earned savings.
I have compassion for those individuals on the video and millions like them. But it is not the end of the world.
Nobody knows if the worse is over, but better things are coming, as sure as the sun will be seen tomorrow. Cycles, up and downs... the up is coming.
Best!
From The Safe
Quote from Brandonf:
This special was amazing too..just seeing how little the folks on Wall Street care.
They spend billions upon billions of dollars to convince people a lie is true, and then blame them for believing in it. Sick.
WRONG. Any person with half a brain should know that money doesn't grow on trees.