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Unfortunately pensions will be under even more stress in the restarted ZIRP environment. ZIRP and NIRP policies will cause pension failures across the world.
If this bear market lasts more than a few months it could well be the stray that causes all the Illinois/Chicago pensions to collapse like the card houses they are.
If this bear market lasts more than a few months it could well be the stray that causes all the Illinois/Chicago pensions to collapse like the card houses they are.
All funds will be hurt. Good fund managers should of been playing defensive, forced haircuts could be coming.
Not really. I have been through a number of them. Just wait it out. It will recover. And then there will be another one. I was pretty antsy when my 401K lots 50% of its value AND my house lost 65% of its value in 2008.
This crisis is going to be a disaster, people are going to be on the streets - no jobs, no income, no prospects... and to compound it all the COL in America's cities is SHOCKING. Rents have gone to tranquility base in the last few years, food, health insurance, etc. - all firmly on the Moon, heck why the moon? prices have actually reached the outer Solar system, that's how expensive it has become - how are people going to afford anything with no income?
Real estate/Rents and Health insurance are the two main culprits that have tripled/quadrupled in the last decade.
This crisis is going to be a disaster, people are going to be on the streets - no jobs, no income, no prospects... and to compound it all the COL in America's cities is SHOCKING. Rents have gone to tranquility base in the last few years, food, health insurance, etc. - all firmly on the Moon, heck why the moon? prices have actually reached the outer Solar system, that's how expensive it has become - how are people going to afford anything with no income?
Real estate/Rents and Health insurance are the two main culprits that have tripled/quadrupled in the last decade.
how are people going to afford anything with no income?
Not really. I have been through a number of them. Just wait it out. It will recover. And then there will be another one. I was pretty antsy when my 401K lots 50% of its value AND my house lost 65% of its value in 2008.
Both recovered mostly.
I bought my last house in the fall of 1988 ? but the people wanted to stay in it until school got out in spring. If we had only waited until spring, the prices had plummeted. But we were just so much in love with that house! Oh well. Ten years later when we moved, home values were back up to what we'd paid so we broke even. Mostly we'd had a place to live for ten years, in a house that we loved. Real estate wasn't an investment for us, just a roof over our heads, that's what real estate is.
Back before that there was a crash around 1985 but things came back. In a different way, but they were back. At one point back then interest rates went sky high and I bought a bunch of CDs--laddered them and made enough in a year to buy a small house all by myself. "They" were saying that such and such company was dead and would never come back. And "they" were totally wrong about that, just as "they" are wrong about a lot of things.
This time it's like nothing anyone in this country has ever seen before. Maybe if someone was alive in 1929, it was similar to that. Without much warning except that most people knew that there would be a recession pretty soon, but nothing like this! The 1929 Depression was only halted by WWII spending. Who knows? It could have gone on for longer than the ten years that it lasted. This hits everyone and what's happened is almost totally unheard of. No one has any idea of what's going to happen. Uncertainty is the name of the game, with Fear coming a close second. There's no way of predicting what will happen this time--how many will die, who will die, what effects the deaths will have (especially when very important people start dying), will there be a cure? Will there be a vaccine? Will younger people start dying off too? Will some genius come up with some new idea that will be a winner in the midst of all these losses? What do we know? Nothing.
I'm a retired woman. I don't have a lot (due to divorce) but am just glad I have some savings and that I'm not in the stock market anymore. It was after the 1929 Depression that we got Social Security. Maybe now people will see once again that a safety net is a good thing to have.
If this bear market lasts more than a few months it could well be the stray that causes all the Illinois/Chicago pensions to collapse like the card houses they are.
Many pensions are outright ponzi schemes at this point. People are going to be shocked when many of them collapse. They are promising a yield they simply cannot attain in ZIRP or NIRP environments.
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