OK. So a whole bunch of financial institutions crash....

[Skidmore]

what happens to all those 401K accounts and vested retirement funds that they have required employees to participate in all these years? Do we all end up selling pencils or apples on the street corner in our dotage once Social Security is trashed too?

D

[Rosa Luxemburg]

1. I'm afraid!

things are going to get VERY bad.

[Skidmore]

2. I am too.

I'm very worried right now.

[indepat]

3. Only the tip of the iceberg is known/has been revealed to us

:scared: :D

[crikkett]

4. This downturn may be a blessing as far as social security is concerned.

I can't imagine anyone thinking that privatizing social security is a good idea now.

[SoCalDem]

5. That's the "last shoe", I've been posting about for 4 years

We've had a BUNCH of shoes..a whole closet-full and 401-ks are the last to fall..

unions-buh-byee
pensions-buh-byee
savings & loan scam (a Neil Bush involved there)
affordable health care buh-byee
dotcom "bubble"
outsourced jobs
affordable gasoline
housing "crunch"

Housing/mortgage "industry" was the last thing holding the pyramid scheme together..

and now it's a goner too..(it really always WAS)

Ever wonder why Greenspan left so suddenly?:evilgrin:

[bbinacan]

6. It depends on the

financial institution. If it's the one who is the custody of your 401(k), it doesn't matter because you still own the investments. If you're talking about a mutual fund company, you still own the investments within that fund. The institution can't just take away your investment. If your in a GIC, then that might be different. You might lose some interest earned but, I don't think you'd lose more than that. Just my two cents. Pun intended.

[aspergris]

7. if you are diversified

It is no big deal.

I trade stocks and futures several hours a day.

We have had CRASHES before. We have not yet crashed, but we've had nice stead selling.

Plenty of stocks (AAPL e.g. Apple Computer) are still WELL above where it used to be.

I remember when I thought AAPL was expensive at $40. I bought it anyway, and it's more than tripled.

The financial ARE f*cked. No doubt. The financials =/= the market as a whole.

It's a bear market. Retail/lay investors should look at their time horizon, stay rational, and not panic. Nobody makes money for panic.

I use retail as a contrarian indicator. When the public is saying "OMG It's armaggedon" that's usually a good place to buy. The Wall Street adage is "buy when there is blood on the street"

We've seen NOTHING nearly as bad as the 1987 black thursday crash, or 1929 for sure. But we've seen a nice bear market. Look for value and solid balance sheets, don't panic, and don't listen to the idiot talking heads on tv.