Dow drops over 700 points as stocks slide on fears higher costs are eroding profits

[Bigun]

berdie wrote:
"I am jealous @Bigun . Wish I had done the same. But...I didn't. "They" say not to sell at a time like this. But believe me I am restraining myself to try to stop the bleeding.
My SIL's financial advisor called her and told her not to look at her account. That would completely freak me out!"

Folks... this is why all that talk about 401k's and "privatizing Social Security", blah, blah, blah... was just talk, and will never be more than that.

When people who would depend upon such a system, nearing retirement, could have the lion's share of their "future benefits" substantially wiped out in a market crash, it sure makes the defined benefits of a Social Security system look like "a more sure thing".

No, with defined benefits you may not get as much.
But at least you'll get something.

Why is it OK for the government to run a Ponzi scheme but Bernie Madoff cannot?  @Fishrrman

[catfish1957]

berdie wrote:
"I am jealous @Bigun .

Folks... this is why all that talk about 401k's and "privatizing Social Security", blah, blah, blah... was just talk, and will never be more than that.

So when budget deficit interest is so high that Uncle Sugar can't pay Social Security annutiant payments....  you think the gubmit is going to let SS go insolvent?  And just where do you think the principal for these payment are going to come from?  I'd like to hear your magical formula.......

[IsailedawayfromFR]

So when budget deficit interest is so high that Uncle Sugar can't pay Social Security annutiant payments....  you think the gubmit is going to let SS go insolvent?  And just where do you think the principal for these payment are going to come from?  I'd like to hear your magical formula.......

SS is already insolvent as it has not been self-supporting for a decade and can only exist now from funds from the Treasury.

That is the elephant in the room.

[IsailedawayfromFR]

Agree 100%

That was my theme from day 1 even back in the '90's. AAPL is about my only exception. And that was because I realized they had a business model that highly infiltrated infrastructure like vehicles, and other societal uses, and products that have a sustainable customer  base.

I've made a killing with Apple.

I tend to wrap my arms around things I can see and feel rather than some ethereal software and gadget.  Hard assets are comforting to me, especially during tough times like now.

[catfish1957]

SS is already insolvent as it has not been self-supporting for a decade and can only exist now from funds from the Treasury.

That is the elephant in the room.

There is the common sense knowing that level of insolvency where the shortfalls can be fed incrementally , versus the harsh reality when overall expenditures exceed the capital intake, and the governmentis forced to  make the decison to (1) Throw the nation into an instant and violent act  of hyperinflation or (2) seize 401K's and IRA's (Aprox. $12T) and cover the shortfall under the guise of nationwide annuity.

My guess is our cowardly leaders will take the latter of the options.

[berdie]

So when budget deficit interest is so high that Uncle Sugar can't pay Social Security annutiant payments....  you think the gubmit is going to let SS go insolvent?  And just where do you think the principal for these payment are going to come from?  I'd like to hear your magical formula.......

Actually, you mixed up two different posts. One of them not mine.

I wasn't talking about SS. Only the money that people have worked for and saved in retirement accounts.

As far as SS going insolvent, it probably will. But not until us old geezes go on that old road. We are voters that they need.

And before you ask...damn skippy, I want what I paid in under duress. 

[IsailedawayfromFR]

As long as demand doesn't fall too much. But it WILL fall.

Taking the long term view on these, any demand drop will not be permanent, and will eventually rise once again.

When it does, we will be at the mercy of OPEC and Russia due to oppressiveness by this administration, who will ensure prices are high, so any oil company stock will realize substantial cash flow.

[IsailedawayfromFR]

There is the common sense knowing that level of insolvency where the shortfalls can be fed incrementally , versus the harsh reality when overall expenditures exceed the capital intake, and the governmentis forced to  make the decison to (1) Throw the nation into an instant and violent act  of hyperinflation or (2) seize 401K's and IRA's (Aprox. $12T) and cover the shortfall under the guise of nationwide annuity.

My guess is our cowardly leaders will take the latter of the options.

I have no doubt they will choose the latter as well.

One reason I am feverishly withdrawing as much as I can from my IRAs to distance my money from the reach of the feds