No I actually said 401k will remain safe because it is a long enough term investment for young people that it will recover from this. What I was saying was that the chain collapse of large financial institutions would create a panic among investors, leading to a loss of market confidence, and a downward spiral of the stock market in general. That is why the government had to step in, to halt a chain reaction. Some major players have already been brought down. And more would follow w/o a government intervention. Hopefully the SEC will make new rules to keep this from happening. I personally blame out of control oil speculation for being a major part of this starting, it shifted the economic balance further than it could go.
![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
timeasmymeasure
no subject
Date: 2008-09-20 09:38 pm (UTC)What I was saying was that the chain collapse of large financial institutions would create a panic among investors, leading to a loss of market confidence, and a downward spiral of the stock market in general. That is why the government had to step in, to halt a chain reaction. Some major players have already been brought down. And more would follow w/o a government intervention. Hopefully the SEC will make new rules to keep this from happening.
I personally blame out of control oil speculation for being a major part of this starting, it shifted the economic balance further than it could go.