Posted on 03/05/2009 12:03:14 PM PST by rabscuttle385
There are no fast solutions – either for the US economy or for individuals trying to rebuild retirement funds clobbered by the falling stock market.
That was the message from Mark Zandi, one of the nation’s top economists. Mr. Zandi is co-founder and chief economist of Economy.Com, a firm that provides various kinds of research to individual, business, and corporate clients. He was the guest at a Monitor-sponsored breakfast for reporters on Thursday.
How long will it take the stock market to recover? “It could be a decade,” Zandi said. “If I were an individual thinking about the size of my nest egg, and what I would need for retirement, I think the appropriate assumption is that I am going to get 5 percent annualized returns on my assets.” Many investors enjoyed much faster growth before the stock market collapsed.
(Excerpt) Read more at features.csmonitor.com ...
Zandi has bipartisan credentials. He was an advisor to the McCain presidential campaign in 2008. The New York Times recently referred to him as a McCain campaign adviser who has become the Democrats’ favorite economist because, unlike Mr. McCain, he backs the stimulus spending. Zandi gave a presentation at last week’s White House fiscal summit...he thinks the stimulus package that Mr. Obama signed February 17 should have been bigger.
Broken clock, twice a day.
That’s the zero’s plan. Destroy the wealth in this country and create a nation of people dependent on government.
There will be no recovery until Obozo is out of office.
After the stock market (DJIA in particular) peaked in 1929, it didn’t return to those levels until the mid 1950s.
A quarter-century.
I can make a prediction too. WIth the kenyans economic policies that will not favor growth it could take decades due to extrmely flat or no growth, just like the market before it took off in the 80’s.
Obama represents the beginning of the era of post-capitalism.
We are no longer concerned about the production of goods and services.
We are only concerned about distributing whatever is produced "fairly."
The era of the "distributionists" has arrived.
You are absolutely correct.
It is Obozo’s plan to destroy the U.S.
Yep, the market has lost about 10 years of growth so its a safe prediction to say it will take 10 years to get it back.
I bet sooner.
Nope. Your 401K is NOT going to recover. It’s going to be nationalized.
Mine looks pretty good...
Shorting is your friend in times like these as are metals and gas/oil when the inflation hits.
We didn’t lose money in our 401Ks, we had transferred to stable funds (money markets, treasuries) before this mess started...however, if they keep raising the debt by passing bills worth trilions, it won’t matter because our money won’t be worth anything anyway, they’ll have to devalue it.
We won't. The Zero will ensure that we don't. If he gets re-elected, and he probably will find a way, we're looking at 8 years of Marxist-Stalinist Socialism. The market may never recover in my lifetime and I'm 54. My 401(k) is in tatters. I am enraged. But there is nothing I can do...................
I should’ve taken that money and had a good time. In my old age, I could then let zer0 support me.
With the FDIC comments yesterday, and articles like this one, you get the impression someone is trying to destroy our economy.
Evidently the socialists were fairly terrified that social security might be overhauled so people could manage their own retirements.
Something else to consider . . . If the value of a share of stock or a mutual fund declines from $100 to $50, then it has lost 50% of its value. That same share has to double in value (i.e., increase by 100%) in order to get back to its original level.
If by “recover” they mean “return to the same numeric value”, well, maybe. (Maybe not, too.)
But what will a loaf of bread cost then?
And while your ability to claim losses against your taxes is limited, their ability to tax you all the way back up isn’t.
They don’t know. They are as much in the dark as anyone else.
Any claims of two years, four years, ten years, are nonsense unless the prognosticator can also correctly predict political regime change away from the current Marxist junta, and (back) to unfettered free market capitalism.
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