I'm wondering if Obama and Geitner are going to start cold calling and making annuity pitches over the kitchen table. Kings of the Living Room! According to this Bloomberg article, the White House is considering how they can encourage workers to invest their savings in annuities to create guaranteed income streams.
Seriously, the government is now getting into the business of giving financial advice? No thanks. Isn't this the classic overreaction that we see from our investors after a major market move, either up or down?
This isn't even a biased political commentary. The Republicans are just as bad as the Democrats on this count. Remember when W. Bush was running for President in 2000? One of the items that he campaigned on was giving Americans the ability to invest their portion of Social Security in the stock market. Then we had a market crash, and that idea died. Can you imagine if this passed a couple of years earlier? Criticize Social Security all you want, but it is what it says it is, a social program, a safety net. Instead we would have had everyone dumping "their portion" of Social Security into dot-com stocks in 1999. The bubble would have been even worse, and the crash more devastating.
Fast forward ten years, and we have come off of the "lost decade" and specifically a recent market crash. So, what is the answer? Time to get super conservative and invest our retirement portfolios in annuities. Great job timing the market two years after the fact.