The Ever Shrinking Stock Market

January 3, 2008 by roland.

January 2008. The piper has come to be paid and our elected officials are still too busy lining their own pockets to worry about promises made in the past. There is no longer any method of taxing a solution into place. Social Security is about to go bankrupt from a double whammy. The news only talked about the first whammy. They never bothered to look at the second whammy. The second whammy was the knock out punch.

January 2008. Stock market opens the New Year with a plunge. Lots of people try to write it off to vacations and other holiday excesses. It’s not. Small rally from bargain hunters on the second day of trading keeps people blissfully ignorant.

January 2008. The first wave of Baby Boomers is forced to take mandatory distributions from their retirement accounts and start drawing on Social Security. The light switch has now flicked. The generations after the baby boomers are smaller in number, earning less, and carrying debt rather than investing. The Visa/MasterCard way of life has finally come home to roost.

January 2008. For the first time in history, the outbound spigot became larger than the inbound spigot. Mutual funds will now shrink in total dollars managed. Some funds will grow in size and value, but only by eating their young and the young of others.

January 2008. When Congress and the stock market finally ran out of time.

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