Have we helped destroy the middle class via our 401ks?

[Klukie]

This is something I always think about when discussing job losses. Don't we feed the beast by investing in companies that close down production in the US to increase profitability for the shareholders?

[marmar]

1. The 401(k) is the greatest marketing scam since bottled water.

nt

[DrDan]

4. how so?

[dionysus]

2. it all depends how your 401k is set up. you could have 100% of your funds invested in bonds and

cash and never touch a single stock.

so many people don't have any idea how 401ks work.

[Klukie]

3. I wonder what the percentages are...

Like how much we have invested as a nation and what we are invested in.....Do you know if there is a breakdown of that info?

[dionysus]

13. hm, not sure if that's published anywhere.

[DrDan]

5. are you suggesting that were it not for 401Ks, money would not be

invested in stock?

[Klukie]

8. No ..not at all...

I am well aware that someone will always invest. I am just wondering that maybe if we boycotted companies instead of ivesting in them we could gain the upper hand when it come to jobs. I think that our blind investments (including my own) may be part of the problem...but hey..we got a piece of it...right?

[DrDan]

9. well - speaking for my plan - there is no lack of options should one want to

boycott certain stocks . . . or boycott stocks all together and invest in bonds.

[Klukie]

10. Yeah...well I would guess

that many just give their money over to the professionals to take care of because they don't understand the way it all works and as long as they get a return they don't pay attention.

[DrDan]

11. I don't doubt that at all

but if we can't even get our elected officials to stop rewarding this behavior, I am not sure we as individual stockholders have any leverage. Institutions are at the wheel.

[Klukie]

12. I am sure you are right....

It is very sad.

[OHdem10]

6. Along with POORLY MANAGED TRADE POLICY. Outsourcing

and Relocation of jobs out of country with no concern
for Industrial Policy or maintaining a mfg base in this
country.

This is why the jobs continue to be lost. Companies
have and are adjusting for a middle class who earns
much less money.

This illustrates the adjustment being made.
Twin Bedspread with Shams at Sears $39 dollars.

Twin Bedspread with Shams at Pottery Barn $150 dollars.

This illustrates how the country is adjusting to the new normal.
\

[zipplewrath]

7. Mutual funds

The mutual fund, combined with the 401K, have led in many ways to various market activities that we have seen lately. Wall Street started getting the kind of money that "community banks" used to get. One can argue about whether this was a good thing or not. The mortgage backed securities phenomenon was as much a response to foreign capital looking for a place to invest as American based capital.

[TheKentuckian]

14. Yep, by subbing in for capital so they are free to speculate and now we aren't even capitalist

We just pretend to be so that the gamblers are worshiped and never expected to be responsible with their free resources.

[ItNerd4life]

15. 401k has nothing to do with job losses.

Jobs relocating to other countries have to do with government policies. Blame the government for the relocation of jobs, not the companies.

[Klukie]

16. So when a company makes a decision to shut down

and move to Mexico for cheaper labor that is the Governments fault...please tell me how. Maybe nameless, faceless stockholders wanting their returns may contribute to these decisions....maybe we are all responsible in some way.