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

The social security program was never intended to be a person's sole retirement income. We've come to expect more from this program than what is affordable. Furthermore, all members of Congress and the former Presidents since FDR have all contributed to the decline of the social security program by spending the money in the trust fund. As soon as revenue is received, the members of Congress spend it on other programs and write an IOU to the trust fund. This insolvency problem has been coming for many years. We would not be in this funding dilemma if the FICA taxes had been left in the trust fund to accrue interest. We now can't afford to support the elderly who have contributed their entire lives to social security. The changing demographics will also not support this program in about 20 years. Either increase taxes, decrease benefits, or a combination of both. Good luck and remember to thank all the current and former members of Congress!

12
DLP on May 17, 2009 at 09:12 PM

As stated by the Democratic party its agenda that emphasizes the strong economic growth, affordable health care for all Americans, retirement security, open, honest and accountable government, and securing our nation while protecting our civil rights and liberties. These are honorable virtues.

However, as with democratic and republican leadership in the past, the Obama administration continues to jeopardize the United States financial stability by creating a 1.8 trillion dollar deficit in 2009. The notion that congress can continue spending money that we as a country do not have should be worrisome for all Americans.

If the U.S. is not careful with its already precarious public finances, other nations may be less willing to maintain their deep faith in the dollar as the global reserve currency and in the U.S. financial system as the best vehicle to intermediate savings and investments. Since the U.S. will emerge from this crisis with larger debt and deficits, any material erosion of trust will make it harder to attract the required funds from abroad, complicating an already challenging policy.

Believing that our leadership in Washington is looking out for our best interest is short cited at best. The present administration is continuing to jeopardize our financial well being; however the common man does not have the intellect to understand this issue. Wake up, write your congress person and demand that we as a Country balance the budget before it is too late and we become bankrupt as prospering nations become unwilling to buy our treasury notes.

13
liberalspender on May 29, 2009 at 02:57 PM


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