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401(k) Plans Need Fixes, Advocates Tell Lawmakers (Update1)
March 16 (Bloomberg) -- U.S. lawmakers should reform retirement plans after 401(k) and Individual Retirement Accounts lost more than $2 trillion in value since October 2007, a group of consumer and labor groups said.
The new consumer-labor group, “Retirement USA,” backed by the Pension Rights Center, the Service Employees International Union and the Economic Policy Institute, said the flagging economy has highlighted the inadequacies of 401(k) plans and increased the need for alternatives such as government-managed funds run with professional oversight.
Retirement account balances plummeted over the past year, as the Standard & Poor’s 500 Index declined 38 percent. The average 401(k) balance fell to $50,200 in 2008 from $69,200 the previous year, according to a January study by Fidelity Investments.
“We may not be able to help the people hurting right now, but we should set up something for the future that will make people more secure,” said Alicia Munnell, director of the Center for Retirement Research at Boston College. “It’s been shown clearly that individuals make a lot of mistakes.”
“America’s promise of a secure retirement is central to our nation’s ideals,” Karen Ferguson, director of the Pension Rights Center, said in Washington March 10. “But for too many Americans, that promise is unfulfilled. We need a new system.”
Sorry to inflict more bad news, but, knowledge is power...to move yer stuff somewhere safer than that stuff...
Retail REITs Have Further to Fall as Stores Struggle (Update1)
March 16 (Bloomberg) -- There’s little relief in store for investors in U.S. shopping center and mall landlords even after the shares plummeted 80 percent from their February 2007 highs.
“REITs are cheap but they’re going to continue to be cheap,” said Marc Halle, managing director of Prudential Real Estate Investors in Parsippany, New Jersey, whose firm manages about $32.5 billion in real estate assets. “We’re going to see increased corporate bankruptcies and continued unemployment for the next few months.”
U.S. mall owners are coming off their worst-ever year of stock market losses as consumers cut spending and retailers shut stores. Vacancies at malls and shopping centers approached 10- year highs in the fourth quarter and will rise further, according to New York property research firm Reis Inc. More than 200,000 store closures are projected for this year by Howard Davidowitz, chairman of New York-based retail consulting and investment banking firm Davidowitz & Associates Inc.
“Thousands of shopping centers will close,” Davidowitz said in an interview. “It’s a debacle.”
Originally posted by Hastobemoretolife
reply to post by Hx3_1963
I think economics should be a class just like Math, Science, English, etc. It should be one of those courses that should be a staple class.
The spend and borrow economy that we have is unsustainable.
Our financial overseers will create a world central bank in the next few years. Growing higher consciousness in the world will enable it to become a reality. This bank will have a mandate to monitor, regulate, and maintain global currency, credit, and debt issuance. It will ensure that growth of these activities roughly matches global economic output. It will come about as the chaos and inadequacies engendered in our present monetary system become evident to everyone and a world central bank seen as the best solution.
Individuals and groups in financial markets everywhere, lacking inner fulfillment, have demonstrated inordinate greed resulting in reckless financial games and gambling – are bringing the financial system to its knees.
Such mismanagement in the financial system, I believe, will require the new world central bank to disallow banks everywhere from continuing in unfettered debt creation and speculative excesses.
The only real answer to such economic threats is higher global consciousness.