Citizens of the United States

Predicting the United States economic crisis will be over in roughly two years; this will only happen if everyone becomes fiscally responsible. As a nation we want to someone else to resolve issues. Individuals are living past their means with revolving loans on credit cards. Businesses are expanding corporations with loans. The only entity assuming responsibility and saying, "We can fix this," is the government. Unfortunately, some issues are beyond the control of government.

People may infer or truly believe the stock market crash is a conspiracy. However, everyone was aware the Baby Boomers were reaching retirement age. Pensions were considered unstable, so the 401K Plan was invented. These are pension plans correlated to a company's stock. Now they are retiring and cashing in shares to travel: pay off bills; own a home or withdrawal because they can without penalty.

Several people retired before others. When someone sells shares back to the corporation stock price goes down. They were able to get top price to buy necessities, while others had to wait until after the price per share decreased.

Those who retire will never reinvest money in the stock market, because they paid off their mortgage. This means the burden of replenishing mutual funds is the responsibility of young, entry-level personnel.

Working for a large corporation it made sense to enroll in the Employee Purchase Plan, not 401k. Signs of heavy lay-offs occurred. People who always showed up late or not at all were finally getting fired. All the policies were being enforced. They needed to trim the staff by over one-hundred people and everyone cashed in their shares after taking an exit poll.

As Warren Buffet says, "Don't lose money." This was a special event, yet long term investing is increasingly attractive. Stock prices are about as low as they are going to get; therefore, it is easy to not lose money. For example a person invested two thousand dollars twenty years ago. They purchased more shares with their dividends and their portfolio rose to fifteen thousand dollars. The stock market took a bad turn and now their portfolio is worth eight thousand dollars. They still have the two thousand dollars. They only feel a loss related to an imaginary seven thousand dollars.

There is no guarantee a corporation will stay in business; however, as long as they are in business a person can wait for stock prices to go up. Therefore, if a corporation looks as though they will in business for the next ten to twenty years there is always time to withdrawal the initial investment amount. Over the course of twenty or thirty years it is bound to happen. When it does, they still have stock shares for a potential retirement fund. Anything a person does early on in life may greatly change their future.

I respect people who make the best decisions based on the current situation, not future projections, especially when they could not afford it. These bailout programs are going to cease and something will finally be done. Businesses pulling away from dipping into theoretical money will stop expanding in unnecessary directions. If unable to live within their means and become responsible, they will go out-of-business. That will create some relief.

People stopped dreaming all over the nation. People did not get a huge raise within two years and lost their homes. They made wagers on unlikely outcomes. As time goes by everyone is starting to realize what they need to do in order to get what they need. The government can educate the public. People are going to retire in mass. It is not a conspiracy. Citizens of the United States are largest branch of government and though a trying time; if everyone acts responsibly; living here and now, we should be fine. Financial outlook is actually improving.

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