Cities and States rely on the market for their pension funds. CA has ~$2 trillion in underfunded obligations ($83K per household)[1]. If the market doesn't ma

Cities and States rely on the market for their pension funds. CA has ~$2 trillion in underfunded obligations ($83K per household)[1]. If the market doesn't magically make up the difference, the state will in the form of new taxes, budget cuts, and restructuring - or it can just go into a debt spiral like Illinois and default in 30 years. Universities rely on the market for their endowments ($500 billionish). When the market goes down, tuition goes up. ~60 million Americans have a 401K worth about $6 trillion. Many of those people are approaching retirement or have already retired. > The fact that it’s going up helps only a minority of the people. You may not be directly helped, but you will definitely feel the pain (eventually) when it goes down. 1. https://us.pensiontracker.org/stateSummary.php?idcode=06 https://us.pensiontracker.org/stateSummary.php?idcode=06