Most people have 401Ks and IRAs. To invest in a savings account at your local bank is FOLLY.
Back it up. Show me your stats. Show me that more Americans have 401Ks and Ira than don't.
Here’s some:
42 million employees are saving for retirement through company-sponsored plans; Americans have more than $1.9 trillion invested in 401(k) plans ...
www.psca.org/starting.html
42 million. And there are how many people in this country?
I would say most people certainly DO NOT have a 401k plan.
According to the Wall Street Journal, less than two-thirds of all workers save to 401k plan.
http://online.wsj.com/article/SB118861107481015416.html
Next, consider how many government employees and even private employees such as big utilities, auto-manufacturers, Airlines, etc... still will be getting a retirement pension, and are not contributing to separate savings accounts, but relying ONLY on that future pension.
Finally, consider how many illegal immigrants work off the books, how many welfare families and entitlement families don’t save a penny.
I don’t see any evidence to back up your claim that most people have a 401k. Futhermore, of those who do, how many are putting in $200 a month, which really is WAY too low to fund their future retirement.
The savings rate of this nation is pathetic. A true recession will crush consumer confidence and stymie consumer spending, which IS 70% of our GDP. It is going to hurt.