Drudge Retort: The Other Side of the News
Tuesday, December 19, 2017

President Donald Trump is trying out a new campaign slogan: "How's your 401(k) doing?" The answer for more than half of Americans is that they don't have one. Trump has tested out the line this month at a fundraiser, a campaign rally and in a White House meeting, predicting that the rising U.S. stock market will help him win re-election. But only about 45 percent of private-sector workers participate in any employer-sponsored retirement plan, and the lower-income workers in Trump's political base are the least likely to hold money in such an account, according to the Government Accountability Office.

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Trump mentions the stock market almost daily in tweets or public remarks, taking direct credit for record highs by the Dow Jones Industrial Average and other indexes. But only about 14 percent of U.S. families directly own stocks, an asset class dominated by the country's top earners, according to the Federal Reserve.

Meanwhile, the president has also rolled back efforts to expand retirement savings options to more middle-class and low-income workers.

For a president propelled into office in no small part by resentment that a broad swath of the country has been left behind while an entrenched establishment prospers, continual references to the stock market and 401(k) accounts risk alienating his supporters, said Austan Goolsbee, a former chairman of the White House Council of Economic Advisers under President Barack Obama.

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As he gets a POS tax cut passed which will assuredly lead to a stock market bubble and then a crash, I don't care about what he has to say today. I want to hear what he has to say when the "house of cards" collapses, just like Dubya's did. Those who will not learn from history are destined to repeat it.

#1 | Posted by danni at 2017-12-19 09:53 AM | Reply | Newsworthy 2

I noticed sniper used this phrase right after his god did.

#2 | Posted by BruceBanner at 2017-12-19 10:23 AM | Reply | Funny: 3

At this point they're just mocking Americans.

#3 | Posted by BruceBanner at 2017-12-19 12:02 PM | Reply

Since Trump hasn't passed a major initiative that that affects the economy yet.... Thanks Obama!

#4 | Posted by Sycophant at 2017-12-19 12:04 PM | Reply | Newsworthy 1

As he gets a POS tax cut passed which will assuredly lead to a stock market bubble and then a crash...
#1 | POSTED BY DANNI

Doubt it. Feds are going to jump interest rates to stop it.

#5 | Posted by Sycophant at 2017-12-19 12:05 PM | Reply

THANKS OBAMA!

#6 | Posted by hatter5183 at 2017-12-19 12:23 PM | Reply | Newsworthy 5

"Doubt it. Feds are going to jump interest rates to stop it."

Ask Jim Cramer about that and get back to me.

#7 | Posted by danni at 2017-12-19 12:33 PM | Reply

My 401(k) is doing great. Many of my neighbors and friends who don't have option of getting a 401(k), not so much. The inequality in America is beyond sickening at this point.

#8 | Posted by moder8 at 2017-12-19 12:48 PM | Reply | Newsworthy 2

Very reminiscent of the Saturday Night Live skit with Jesse Jackson hosting during the Reagan administration. Look up 'The Question is Moot'.
Can't pull up a link from work, but this should get you there:
www.bing.com

#9 | Posted by Avigdore at 2017-12-19 12:55 PM | Reply

Off topic but trump probably hasn't walked a sum total of 401K in his lifetime.

#10 | Posted by IndianaJones at 2017-12-19 12:56 PM | Reply | Funny: 2

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Who owns the stocks?

There is $22.8 Trillion in stock outstanding in American corporations

Individual investors own $5.7 Trillion
Foreign investors own $5.5 Trillion
Pension funds own $3.7 Trillion
IRAs own $3.1 Trillion
Insurance companies own $1.6 Trillion
401(k)s own $1.6 Trillion
nonprofits own $956 Billion
529 College funds own $600 Billion

The top 10% own 83% of the stocks
54% of Americans own no stock including in retirement accounts

www.businessinsider.com

#11 | Posted by hatter5183 at 2017-12-19 01:30 PM | Reply | Newsworthy 1

2/3rds of Americans don't have 401k plans. I guess they ain't doing so good.

#12 | Posted by 726 at 2017-12-19 01:30 PM | Reply

54% of Americans own no stock including in retirement accounts

www.businessinsider.com

#11 | Posted by hatter5183 at 2017-12-19 01:30 PM | Reply | Flag

They should have been born wealthier.

#13 | Posted by 726 at 2017-12-19 01:31 PM | Reply

"2/3rds of Americans don't have 401k plans."

"54% if Americans own no stock including in IRA"

How come those numbers aren't closer together?

#14 | Posted by eberly at 2017-12-19 01:44 PM | Reply | Newsworthy 1

"They should have been born wealthier."

Me too.

They should have been white also, right?

#15 | Posted by eberly at 2017-12-19 01:45 PM | Reply

I'm sorry everyone.....you are all so down and pissy that I just can't help myself.

#16 | Posted by eberly at 2017-12-19 01:47 PM | Reply

My 401(k) is doing great. Many of my neighbors and friends who don't have option of getting a 401(k), not so much. The inequality in America is beyond sickening at this point.

#8 | POSTED BY MODER8 AT 2017-12-19 12:48 PM | FLAG: You must have some pretty 'close' neighbors to know that.

#17 | Posted by MSgt at 2017-12-19 02:01 PM | Reply | Funny: 1

"Doubt it. Feds are going to jump interest rates to stop it."
Ask Jim Cramer about that and get back to me.

#7 | POSTED BY DANNI

Why would you ask Jim Cramer? The guy who completely missed the melt down in 2008 and interviewed a bank head during that time who said everything was fine?

#18 | Posted by Sycophant at 2017-12-19 02:26 PM | Reply

As he gets a POS tax cut passed which will assuredly lead to a stock market bubble and then a crash...
#1 | POSTED BY DANNI

We already have a stock market bubble. What goes up is going to eventually come down, no matter who is President.

#19 | Posted by Whatsleft at 2017-12-19 02:36 PM | Reply | Newsworthy 2

18 why ask her? Danni is on record saying she doesn't invest. Asking her to comment on equity markets is comical. Much less the bond market . Listening to her understanding of what she thinks Cramer said about the Fed is hilarious. It's like asking Harvey weinstein to comment on sexual harassment

You see when it comes to the ramifications of QE 1,2, and 3 and its unintended consequences be very careful of who's opinion you lend credence.

I'm on record as long the markets. Thank goodness I didn't listen to Danni or corky on 11/8 heh? Of course it will correct, downward. The question is what happens after that!!

#20 | Posted by DavetheWave at 2017-12-19 02:46 PM | Reply | Funny: 1

- Thank goodness I didn't listen to Danni or corky on 11/8 heh?

Yeah, close call. You might have actually gotten a tax cut rather than waiting around for the corps and the very wealthy to Tinkle Down you back and tell you it's raining... which they won't do anyway.

#21 | Posted by Corky at 2017-12-19 02:53 PM | Reply | Newsworthy 1

What I found interesting with my 401k:

Stock market went high, then it went low again. My balance went high, then it went low again. Ok, I watched the stock market go high again to it's original high value and looked for my balance to go high as well. I didn't. It then occurred to me that thousands in fees had been taken out and I never did recover what I once had. Oh, if I had it to do all over again...

#22 | Posted by bornfree at 2017-12-19 02:58 PM | Reply

#22

Yeah... this Bill should be called the Tax Lawyers Full Employment Act. They got Christmas early.

#23 | Posted by Corky at 2017-12-19 03:01 PM | Reply | Newsworthy 1

Rep. Eric Swalwell‏ @RepSwalwell

#GOPTaxScam forces families to pay taxes twice on much of their income by scaling back ability to write off all of their state & local taxes, yet doubles the estate tax exemption to give a big cut to heirs of the wealthiest 0.2% of estates. #MakeAmericaPlutocraticAgain
8:59 AM - 19 Dec 2017

#24 | Posted by Gal_Tuesday at 2017-12-19 03:28 PM | Reply | Newsworthy 1

Leave it to the ------------------- to pat himself on the back for inheriting a solid economy.

#25 | Posted by reinheitsgebot at 2017-12-19 03:34 PM | Reply

John Lewis‏ @repjohnlewis

I oppose this conference report with every bone in my body. This tax bill is a $2.3 trillion holiday gift for Wall Street, the rich, and the wealthy. Conceived in darkness and birthed with the help of donors and funders. This bill is not for the people. It is not tax reform.
9:34 AM - 19 Dec 2017

#26 | Posted by Gal_Tuesday at 2017-12-19 03:38 PM | Reply | Newsworthy 2

Huh - market is down today. Does that mean market doesn't like this tax cut?

#27 | Posted by GalaxiePete at 2017-12-19 04:27 PM | Reply

22 Then thats ALL on you. 'The fees' didn't rob you, they have been posted and are a matter of public record. The S+P gained over 7% per year since 10 years ago. That's a double on principal. If you had diligently invested thru the bottom you've done well. If you stuck with it.

Now the real question is what to do from here. Bonds have as much risk as equities...So standard asset allocation models may not offer the panacea most reach for. And with the markets so high, it's easy to keep the contributions going but your not getting as much of the market as you were when the dow was at 6,000.

#28 | Posted by DavetheWave at 2017-12-19 05:38 PM | Reply | Funny: 1

"2/3rds of Americans don't have 401k plans."
"54% if Americans own no stock including in IRA"
How come those numbers aren't closer together?

#14 | POSTED BY EBERLY AT 2017-12-19 01:44 PM | REPLY |

because some people have pensions or IRAs or just plain own stock but have no 401(k)

In fact simple math tells me that 13% of Americans have stock but not 401(k)s

It's like comparing the number of people who don't have oranges (401(k)) to the number of people who don't have fruit (stock).

#29 | Posted by hatter5183 at 2017-12-19 06:01 PM | Reply

"How come those numbers aren't closer together?"

You have to print out the page, and then fold the paper in thirds, like on the back cover of Mad Magazine.

#30 | Posted by snoofy at 2017-12-19 06:33 PM | Reply | Funny: 3

22 Then thats ALL on you.

#28 | POSTED BY DAVETHEWAVE AT

Yeah, #22.

The reason you'red not wiping with 10 dollar bills isn't because the game was rigged against you after the rules were laid out and the game had started, it's because you did it wrong.

...Somehow...

#31 | Posted by MrSilenceDogood at 2017-12-20 04:48 AM | Reply

Dave, I hope you are overstating the risk to the bond market.

#32 | Posted by visitor_ at 2017-12-20 07:55 AM | Reply

31 So now the markets are rigged?? Was that thru Obama years too, or under Bush and Trump??

#33 | Posted by DavetheWave at 2017-12-20 08:01 AM | Reply

32 Ha I hope so too!!

#34 | Posted by DavetheWave at 2017-12-20 08:01 AM | Reply

Dear Dave,

Attempts were made after the Great Depression and Savings and Loan Scandal to end corruption by PUTTING OFFENDERS IN JAIL. But NOT ANYMORE. Doesn't matter which party you're talking about either. Both are profoundly corrupt. Republicans just happen to be more brazen about it.

The reality is most investors are lucky to keep pace with inflation, while a few reap massive profits. 70% of daily trades are conducted by hi-speed traders skimming small differences. Leaching everyone else's savings. Not that you have any choice but to save or die young. That is the system people are trapped in, unless they play against the odds and start a successful business, in which the failure rate is 70%.

The safest investment, for several reasons, is your home. But the skyrocketing cost of real estate is making the US business climate uncompetitive.

#35 | Posted by bayviking at 2017-12-20 08:16 AM | Reply

70% of daily trades are conducted by hi-speed traders skimming small differences. Leaching everyone else's savings. Not that you have any choice but to save or die young.

How do Market Makers providing volume to the market, leach your savings? Lmao

#36 | Posted by GOnoles92 at 2017-12-20 08:59 AM | Reply

No wealth is created in the stock market. It only exists to move money around. If someone "earns" money by buying low and selling high, some schmuck sold it low and another scmuck bought high. At the end of the day the amount of stock and money is the same. The only thing that has changed is whose pocket it is in. 401(k)s are atm machines for active investors. Regardless of how high the stock market goes 401(k)s will keep buying. This creates a market for active investors to sell high. In bad times people in need cash out 401(k)s. This creates a market for those same active investors to buy low.

#37 | Posted by hatter5183 at 2017-12-20 09:32 AM | Reply | Newsworthy 1

#36
Then no wealth is created via any business. It's all just passing money around. The only 'creation' of wealth is when the gov prints money faster than inflation.

#38 | Posted by Snowfake at 2017-12-20 01:01 PM | Reply

35 Oh bull crap. I'm an expert on the S+L crisis, not very many went to jail. Next to none. And it might shock you to learn how many of the (the very same )failed exec's were actually secretly hired by the FSLIC to sell off the failed institutions loan books.

#39 | Posted by DavetheWave at 2017-12-20 06:50 PM | Reply | Funny: 1

37 That's ludicrous.

#40 | Posted by DavetheWave at 2017-12-20 06:51 PM | Reply | Funny: 1

36 I just don't get the dr left. Most all these companies that are eating the worlds much are US domiciled. Perhaps you'd be happier to live in another country beholden to MSFT APPL FB GOOG ORCL AMZN XON etc???

#41 | Posted by DavetheWave at 2017-12-20 06:53 PM | Reply | Funny: 1

Dave,

You're right about prison & the S&L, I had listened to Bill Black talk about the 900+ prosecutions, which does not automatically lead to prison. But doesn't change the fact that there was serious investigations, prosecutions and prison after the Great Depression and next to nothing but a cover-up for the 2008 Great Recession. All three events were caused by control fraud and marketing fraud. So, perhaps, if more S&L Execs had gone to prison, the fraud-masters of 2008 would have thought twice, before destroying the global economy for personal gain.

New wealth is created by production and is the foundation for national wealth and power (until the military intervenes). Everyone in the USA enjoys economic advantages because of good will after WWII, Bretton Woods and our military. But that doesn't make a winning long term national strategy. The basis for Japan's success story is making better widgets. The basis for Japan's current economic stagnation is a financial system designed to mire the world in debt.

Is there any public benefit to updating and now renting Word? Is the computer or on line shopping more important than housing, cars, refrigerators or washing machines? I no longer get direct answers to my questions from Google, who constantly inserts paid irrelevant advertisers. It is impossible to rationally justify many stock prices based on sales, and no worse case than Amazon. There is both enormous benefits derived from our strong hi-tech industries and the next economic bubble that will create a few winners and millions of losers.

Flipping houses, stocks or bonds transfers wealth from one person to another. We live in a society which values the quick buck made by flipping when we offshore manufacturing and give flippers the lowest tax rate. This can only lead to the rise of China and demise of the USA. Yet this has been a deliberate national policy for a very long time.

#42 | Posted by bayviking at 2017-12-21 08:16 AM | Reply

Under the new tax law income earned by American corporations overseas will not be taxed by the federal government, so hey Republicans, will that encourage or discourage offshoring of jobs? If any of you are honest enough to even answer we all know what the only truthful answer is.
Did you know also that there is more deductibility for automating than there is for hiring.
This tax bill was perhaps the biggest lie in history. Perhaps you Republicans were so blinded by the reduction in your own taxes that you didn't notice Ryan, Trump and McConnell winking every time they pretended this was a "middle class tax cut." Today they aren't even winking they are just laughing at the fools who believed that nonsense.

#43 | Posted by danni at 2017-12-21 09:11 AM | Reply

"Did you know also that there is more deductibility for automating than there is for hiring."

No. Tell us more.

#44 | Posted by eberly at 2017-12-21 09:15 AM | Reply

"Today they aren't even winking they are just laughing at the fools who believed that nonsense."

Danni, does this tax plan raise or lower your taxes?

Don't be coy...we all know you know the answer to this. You've checked it out. Answer the question.

#45 | Posted by eberly at 2017-12-21 09:18 AM | Reply

Danni, does this tax plan raise or lower your taxes?

Don't be coy...we all know you know the answer to this. You've checked it out. Answer the question.

#45 | POSTED BY EBERLY

Your premise sucks because it's so ridiculously short-sided. It was stupidly short-sided with the two Bush Tax Cuts, and it's stupidly short-sided now with the Trump/GOP tax cuts.

We get crumbs in the form of ~ 800 or 900 bucks, while TRILLIONS OF DOLLARS are freely handed over to billionaires and their corporations ... when we as a country could use these trillions toward things that benefit ALL Americans that are long lasting, like infrastructure, education, and healthcare.

#46 | Posted by PinchALoaf at 2017-12-21 09:38 AM | Reply | Funny: 1 | Newsworthy 1

"Your premise sucks"

If I had one, then maybe it would.

what's my premise? If it sucks, then you should tell me what it is, at least.

#47 | Posted by eberly at 2017-12-21 10:13 AM | Reply

she isn't going to answer, Pinch. You and I both know why.

go back and read what she claimed. Take your issue with her, not me.

#48 | Posted by eberly at 2017-12-21 10:15 AM | Reply

"does this tax plan raise or lower your taxes?"

If it lowers her taxes by $50 a month, but raises her health insurance premiums by $100 a month, how should she answer?

#49 | Posted by Danforth at 2017-12-21 10:19 AM | Reply | Newsworthy 1

It's nice she has so many friends who show up to remove her foot from her mouth.

LOL

she should answer the question I asked.

enough with the deflections....let her answer. If she can

#50 | Posted by eberly at 2017-12-21 10:21 AM | Reply

"let her answer. If she can"

I agree.

I'd also like an answer.

#51 | Posted by Danforth at 2017-12-21 10:29 AM | Reply

My 401(k), after numerous emergencies needing cash, was liquidated years ago.

#52 | Posted by john47 at 2017-12-21 10:59 AM | Reply

@ eberly
@ danforth

Who cares about arguing over minuscule details when the most important answer, right in front of your noses, is the overall BIG picture.

#53 | Posted by PinchALoaf at 2017-12-21 11:10 AM | Reply

Danni, does this tax plan raise or lower your taxes?

#45 | Posted by eberly

That's not the relevant question.

The relevant question is - does the amount this lowers your taxes outweigh the damage done to your other finances, the damage done to income inequality, and the damage done to the deficit?

#54 | Posted by SpeakSoftly at 2017-12-21 11:13 AM | Reply | Newsworthy 2

*hint - unless you're a shortsighted moron or a rich -----, the answer is no

#55 | Posted by SpeakSoftly at 2017-12-21 11:13 AM | Reply | Newsworthy 1

"Your premise sucks"
If I had one, then maybe it would.
what's my premise? If it sucks, then you should tell me what it is, at least.

#47 | POSTED BY EBERLY

It's true. You have no premise.

Along with no clue apparently.

#56 | Posted by donnerboy at 2017-12-21 11:21 AM | Reply

"Who cares about arguing over minuscule details"

I'm arguing over principles, like whether we should be using real math, or Republican Math™.

#57 | Posted by Danforth at 2017-12-21 11:43 AM | Reply

35% of all US adults have only several hundred dollars in their savings accounts and 34% have zero savings. The median for all U.S. family savings is is just $5,000, and the median for families with some savings is $60,000. This despite 79% of employers have a 401K. Wages are too low for most people to utilize this program.

Speaksoft asks the right question.

One more example. The deficit concern is highly overrated hype. It constitutes 0.1% of our GDP. Indefinite patent protection for drugs and monopolistic pricing account for 2% of our GDP. US drug prices are a problem that is 50 times larger than our deficit. The endless clamor over the deficit will be front and center next year under Ryan, after he made it worse in order to use it as an argument to cut SS and Medicare. What an -------.

The more you make the greater your child care credit. $4000 for someone making a million a year, $75 for someone making $14,500 per year. Child care costs are a major obstacle against low wage earners taking a job. Who needs that credit? Can a poor person even finance child care costs for one year in order to collect their measly credit?

Republicans are engaged in a class war fight, with complete disregard for human rights, foreign or domestic.

#58 | Posted by bayviking at 2017-12-21 12:33 PM | Reply | Newsworthy 1

I'm arguing over principles, like whether we should be using real math, or Republican Math™.

#57 | POSTED BY DANFORTH

You're right, I'm all for real math.

#59 | Posted by PinchALoaf at 2017-12-21 12:35 PM | Reply

"The deficit concern is highly overrated hype. It constitutes 0.1% of our GDP."

Debt servicing is the issue:

"the U.S. government borrows about 42 cents of every dollar it spends. And approximately $1 out of every $4 dollars that it borrows goes to pay just the interest on the national debt."
www.debt.org

#60 | Posted by Danforth at 2017-12-21 12:40 PM | Reply

OK Dan,

But what is even more ridiculous is that there is no need for our Government to borrow from the private sector. It should borrow from itself and save have the cost of everything it does. That's what China does and there is no reason for us to do it differently. The political corruption that created the Federal Reserve in its current form, at the behest of Rothschild, JP Morgan, Rockefeller etc... is the only reason we have such an expensive construct.

The other important point is that the US national debt is equal to the cost of all our unnecessary wars. All other countries have stepped back from perpetual war, as a final answer to every diplomatic stalemate.

#61 | Posted by bayviking at 2017-12-21 02:04 PM | Reply

The political corruption that created the Federal Reserve in its current form, at the behest of Rothschild, JP Morgan, Rockefeller etc... is the only reason we have such an expensive construct.

The other important point is that the US national debt is equal to the cost of all our unnecessary wars. All other countries have stepped back from perpetual war, as a final answer to every diplomatic stalemate.

#61 | Posted by bayviking

Then maybe next time there is a candidate who wants to fight back against the bankers and stop the unnecessary wars, you should support them. There was one in 2016 named bernie sanders.

#62 | Posted by SpeakSoftly at 2017-12-21 02:17 PM | Reply

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