In case you are wondering why you lost 401k money or other money in the stock market, it is because the market was driven up artificially by the financial bubbles after the dot com crash. Instead of measured growth, responsible lending, responsible debt, the banks conspired to offer irresponsible growth, irresponsible lending, and irresponsible debt. The primary culprit is not the American debtor, but rather is the American banker at the highest levels.
If you lost money in your 401k because of a massive bubble bursting you have both the Republicans and Democrats to thank but primarily George Bush and the overleveraging he allowed. In order to finance the Iraq War this man mortgaged the future of the United States. In order to make the biggies rich, he destroyed your 401k's. In order to make his presidency look good, he mortgaged the presidencies of future American leaders.
And this relationship he had with the banks was the result of a worldwide push to impliment Basel 2, 1998 with the off balance sheet banking, allowing banks to take terrible risk, with little notice, until the investment community got burned. The loss in your 401k is directly linked to this push of Basel 2 and the permission of the Bush administration to let this economic voodoo take place.
So then, your high interest rated credit cards, your toxic mortgage, and all the bad loans that you took are a direct result of the Basel 2 plan, and the collapse of the plan hit your 401k.
1. The banks hit you with toxic mortgages.
2. The banks overcharged you with credit card debt and refused to allow decrease in rates even when their borrowing costs declined.
3. The value of your house went down because of the banking scam.
4. The value of the stock market went down because of deleveraging of hedge funds.
5. The value of your 401k may be going up because of the buying of the hedge funds.
6. After more of you are sucked into the market the hedge funds will push or dump the market based upon the impact of the alt a and option arm and other loan defaults coming up through 2011.
7. The wealthy know which way the market and your 401k is going. You do not. All you have is the ability to chase what these big boys do. And if you hold long term you may win and you may lose.
8. I am not a financial advisor. I have would say that people should be cautious in their investments. Very Cautious.
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