FOR IMMEDIATE RELEASE
Contact: Francis L. Holland, Esq.
The Francis L. Holland Blog
http://francislholland.blogspot.com
The Truth About McCain Blog
http://truth-about-mccain.blogspot.com
(202) 657-4347
55 (73) 3288-1716
Skype: fazinformatica2005
MSN: francislholland@hotmail.com
How many Americans are wishing they had all of their retirement in mutual funds or the stock market today, after WallStreetizing their entire US Government Social Security retirement expectations? Not many, I'll bet!
Today,
Putnam Investments has closed a $12.3 billion money-market fund to limit losses to its investors, the large mutual fund company said today. The highly unusual announcement is the latest sign that tremendous financial pressures are now threatening even some of the safest kinds of investments. WaPost
The Washington Post says that there was effectively a 'run on the bank' at this fund, with its exclusively institutional investors all demanding their money at once. So, instead of giving the money out on a "first-come, first-served basis", with every successive withdrawal getting less of its money back than the last, until some got nothing at all, Putnam decided to just divide up what was left equally among the investors and liquidate this fund.
I know John McCain thinks the economy is basically sound, but the "bankruptcy" and liquidation of large money-market funds doesn't seem like a good omen to me. In fact, a lot of people have their retirement funds invested in mutual fund accounts, and such people have got to be increasingly nervous today, fearing that their hopes for retirement could be entirely wiped out.
One of the forces that could lead to a lot failures at these funds is that Moody's is downgrading the debt of a lot of banks, funds and other institutions, effectively making it harder and more expensive for them to raise money to cover their obligations. The more Moody's downgrades debt, the more companies will become cash-strapped and go under, in a downward spiral, unless the same brilliant president who got us into this mess somehow finds an unusually brilliant way to get us out.
Now, with money market funds in trouble, we can't help but ask ourselves what a mess we would be in now had we taken the Republican Party's advice and invested all of our Social Security retirement funds in the stock market? Wouldn't there be a lot of middle-aged and elderly people jumping out of windows right now, just like in the Great Depression?
It's a damned good thing we never let George W. Bush and John Syndney McCain, III privatize Social Security to invest the money in the institutions that are now going under!
The Francis L. Holland Blog
http://francislholland.blogspot.com
The Truth About McCain Blog
http://truth-about-mccain.blogspot.com
(202) 657-4347
55 (73) 3288-1716
Skype: fazinformatica2005
MSN: francislholland@hotmail.com
I just sent out the above press release, essentially saying that it's a damn good thing we didn't do as Bush/McCain suggested and invest everyone's retirement in the stock market and mutual funds instead of Government Social Security.
Imagine how much more complicated the bailouts would be now if they included ALL of the nation's retirement income!
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1 comment:
You would McCain has learned the value of good regulations after this fiasco.
Nope...
http://www.huffingtonpost.com/2008/09/19/mccains-plan-for-health-c_n_127900.html
McCain wants to deregulate the Healthcare industry in the same way that the banking industry was deregulated. His camp released a pdf on his plans late last week and the WaPO and others have caught on.
The pdf had this key line.
"Opening up the health insurance market to more vigorous nationwide competition, as we have done over the last decade in banking, would provide more choices of innovative products less burdened by the worst excesses of state-based regulation."
Obama has learned his remarks and had this to say "
So let me get this straight - he wants to run health care like they've been running Wall Street. Well, Senator, I know some folks on Main Street who aren't going to think that's a good idea."
But how bad is McCain's health plan? This is how bad it is.
http://blogs.tnr.com/tnr/blogs/the_plank/archive/2008/09/16/the-essence-of-mccain-s-health-plan-don-t-get-sick.aspx
Basically if you get sick, you're screwed.
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