Comments on: Pensions and the coming savings boom http://blogs.reuters.com/great-debate/2009/08/06/pensions-and-the-coming-savings-boom/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Jonathan Cole http://blogs.reuters.com/great-debate/2009/08/06/pensions-and-the-coming-savings-boom/#comment-20620 Sat, 08 Aug 2009 17:10:59 +0000 http://blogs.reuters.com/great-debate/?p=4819#comment-20620 Of course, the folly of the savings premise is that it is that cash or cash equivalents at the low interest rates of today, are not savings at all, but acquiescence to the loss of value implicit in inflation caused by the Fed printing money and the government soaking up so much of the capital with programs that have reverse productivity. In short, the currency is being debased.

Today, savings is not a risk management strategy, it is the acceptance of loss. Because the entire spectrum of institutions has been corrupted by conflict of interest, misfeasance, malfeasance and outright larceny, the only hope for pensioners is to try to determine the next bubble and get on board. Until the corruption and self-dealing are attacked, we are doomed to suffer financial insecurity. But since the political institutions have also been corrupted, I would not hold my breath waiting for things to change.

The only savings worth the name is actually expenditures made to reduce living costs. Get on solar energy. Drive hyper fuel efficient vehicles. Invest in durable products before the hyper inflation hits. How far we have fallen! Bush/Cheney were the coup de grace.

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By: Lyle Holmes http://blogs.reuters.com/great-debate/2009/08/06/pensions-and-the-coming-savings-boom/#comment-20615 Sat, 08 Aug 2009 14:37:00 +0000 http://blogs.reuters.com/great-debate/?p=4819#comment-20615 Twenty-five years ago I attempted to secure funding for a two-year old business that served a special niche in the legal world. My company had a significant IT component and our clients were major banks and government organizations. We were growing rapidly. The brokers we spoke with said a private placement could only be accomplished with three years of profitable financials. It was a different world 25 years ago. We had what I call the “lay-away economy.” Sears and most major retailers had payment programs, called lay-away plans…pay small installments for a purchase and when you finished paying for it you could take it home. Those plans, along with the “Christmas Club” have disappeared. Retailers learned to “securitize” their sales. In the last ten years almost any kid in a dorm room with a hot tech idea could secure backing. The new-new economy is really a return to the old economy, the lay-away economy. What James articulates so well is a slowing of growth due to the evaporation of leverage. I suspect the same thing occurred after 1930, when the margin rates allowed an investor to get 9 to 1 leverage on the stock market.

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By: Pete Cann http://blogs.reuters.com/great-debate/2009/08/06/pensions-and-the-coming-savings-boom/#comment-20614 Sat, 08 Aug 2009 14:36:49 +0000 http://blogs.reuters.com/great-debate/?p=4819#comment-20614 If I’m not mistaken, you dropped a couple of balls on this one, James. First, on a minor note, the federal government recently allowed companies to in effect underfund their mortgage obligations. Second, on a major note, as I understand it, many if not all corporate mortgage plans are now federally insured!!! So while I’m living in the tiny apartment I own free and clear on Social Security, because retirement saving will never be enough, somebody who lucked into a pension is going to be pulling down 3x-4x what I do from the same source.

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By: Peter H http://blogs.reuters.com/great-debate/2009/08/06/pensions-and-the-coming-savings-boom/#comment-20453 Fri, 07 Aug 2009 05:30:28 +0000 http://blogs.reuters.com/great-debate/?p=4819#comment-20453 It might be time to encourage people to take up (or re-start) smoking again and drinking excessively, indulging in drugs, drive without a seat-belt or ride a motorbike without a helmet at high speed (even in built-up areas). This might help lower the mortality age and spread the pension funds a bit further.

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