Nearly a week later and the analysis keeps pouring in, along with related news that makes one wonder if anyone other than the extremely rich will ever prosper again.
Bob Herbert goes Behind the Smile to make clear to us that he sees nothing to cheer about in the prospect of Republicans being able to pack the courts (possibly including two or more seats on the Supreme Court), further drain federal entitlement programs of funds (and you were already certain that Social Security and Medicare would be flat broke before your turn, weren’t you?), and make a mockery of environmental and consumer protection laws.
Dan Gillmor, in the unlinkable (and currently unreachable) SJ Mercury News, goes with a straightforward headline for his Sunday column: “Election will make life better — for the rich.” You should know that Gillmor is fairly radically anti-establishment but I always wonder a little about why his bosses keep him around. Anyway, he’s in Hong Kong lecturing at a university there and likens what we’ll be facing here soon enough (in his opinion) to the “cartel economy” that scoiety has developed. “In reality, Hong Kong is largely a cartel economy, where essential parts of the business structure are controlled by a few powerful companies. Elites in business and government are collaborators, sometimes for the public good and sometimes to ensure their own continuing dominance and wealth.” He actually doesn’t go much further than Herbert.
Finally we have a review (in yesterday’s Merc) of Rich Dad’s Prophecy, the latest book from the authors of Rich Dad, Poor Dad. To show you where the book goes, there is the not at all subtle subtitle “Why the Biggest Stock Market Crash in History is Still Coming… And How You Can Prepare Yourself and Profit From It!” Short short is that in about 14 years our investments are going to get swamped by the other side of the same coin that drove the market to such heights in the ’90s: 401(k) and other direct contribution plans. Remember, the law (ERISA) requires that holders begin making withdrawals from these accounts no later than the year in which they reach age 70 1/2.
Right now most people reaching that age are covered by the previously-prevalent direct benefit pension plans–Gretchen Morgenson actually has a good column in the NY Times about current problems with this type of accounts–and so the flow has been all into investments. More money looking to buy has been a force driving stocks higher for years. But in the next decade the huge wave of baby boomers will begin retiring and reaching the age where they must withdraw. What happens when more people want to sell? You guessed it. Seems like there will be time to fix this, since it will be in the interest of the cartel to do so, but otherwise will be very scary!
BillSaysThis 