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The hedge funds and the Goldman Sachs of the world (as if there is more than one GS), are profiting at the hand of institutional investors, you know, the folks
by euroclydon 17y ago
The hedge funds and the Goldman Sachs of the world (as if there is more than one GS), are profiting at the hand of institutional investors, you know, the folks that don't get pensions any more, but instead have some 401K pitchman come into their office and tell them how to plan for retirement.
They used to have this graph that showed the DOW never lost money in any ten year period. It wasn't adjusted for inflation, do that, and you'll hear a giant sucking sound. 401K chumps don't stand a chance of beating inflation, they're sole purpose in life is to add volume to the markets so the skimmers, who add far less value than they take, have someone to fleece.
It's white collar crime: if you can pay off some legislators and capture a couple regulatory agencies, then it's almost legal, though it's far from moral.
Joe 401K should seriously consider keeping his retirement money closer to home where the electronic thieves can't get their hands on it. Let the hedge funds make the long investments. I know corporations need to issue stock in order to grow, but the hedge funds just sit in between the investors and the corporations and manipulate the market.
- gaius 17y agoJoe 401K should seriously consider keeping his retirement money closer to home where the electronic thieves can't get their hands on it. Joe 401k doesn't have much choice in the matter; the tax system leads him in by the nose. Here in the UK, the housing bubble was largely caused by individuals looking for a viable asset class for their retirement. The stock market was out due to a combination of poor returns and Gordon Brown's tax raids on the pension funds. So we see when regulators meddle too much, lots of honest individuals making the correct decision for their own and their own family's future leads to negative effects on the economy as a whole.