It appears to be a misunderstanding of our current budget that is causing some people to make impossible projections about future budgets.
Other things people should think about:
When boomers retiree, they are going to stop making as many contributions to their stock market investments, since those are based on salaries. That cuts into the buy money supporting the market.
If government benefits can't be delivered to these people as promised, they will be forced to cash out of the markets faster than they expected, to keep up their standard of living. More price support for the market leaves. This will negatively impact the markets in a big way, and that will in turn impact pension funds negatively. This will rebound right back against the boomers' own pension funds.
The probability that the boomers' retirement will also generate a long slump in the stock markets is good, in my opinion.
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Tuesday, January 5, 2010
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