Who has retirement accounts? http://www.bankrate.com/finance/retirem ... ise-1.aspx
Cash-strapped employees are turning to their retirement plans as the credit crunch drags on and costs for everyday necessities continue their upward spiral. While hardship withdrawals from 401(k) plans are taken by a very small number of participants -- about 1.5 percent at Vanguard -- the giant fund company says hardship withdrawals have been increasing significantly; up about 17 percent in 2006 and another 9 percent in 2007.
I know mine went from $50,000 to $400 during the 2 years I was out of work. I was fortunate to have it at least. Many didn't.
Maybe the $80 billion a month the Fed has been pumping into the economy is showing up as inflated stock prices?
Hmm...where have I heard that before?http://dailyreckoning.com/the-us-federa ... ial-folly/
Ehow.com relates a piece of history in that “Since the creation of the Federal Reserve in 1913, the money supply had increased 240 percent from 1913 to 1920, because of a relaxed gold standard, and prices had risen by an identical amount.”
Gaahhh! Prices rising 240%! In seven years, the money supply increased 240%, meaning it more than doubled, as did prices! No wonder they had a recession!
They didn't call them the "Roaring 20's" for nothing...http://www.thebubblebubble.com/roaring-twenties-bubble/
By the middle of the decade, the economy had once again become sluggish as the Reserve banks relaxed requirements for credit and more than $500 million was created in new money. Loans totaling more than $4 billion were made available to the American public. The hope was that such measures would stimulate the economy; however, the opposite occurred as more and more consumers took on an increasing amount of debt and the price of stocks and real estate began to skyrocket. In 1926, Coolidge supported the Revenue Act, which reduced taxes on individuals with higher incomes but offered little relief to middle-income families (Chris Butler, 2007).