How did the bankers on wall street steal your retirement? Were you invested in too risky of stock? They warn you about the risk. They tell you to diversify. If you lost money it wasn't the banker, it was stock holders who saw their chance to sell at a profit before you did.

The reason banks were bailed out was there was not enough money in the FDIC to actually insure all of the deposit accounts that would have gone under had the housing market tanked the banks.

For those of you who don't know, if you deposit money in an account, it does not just sit there, the bank loans it out to people who are expected to pay it back. If they fail to pay it back and default on the loans the banks could possibly fail... This is what happened in the 30's. Now we have deposit insurance through the FDIC, however, they didn't have enough money to cover all of the banks that were poised to fail due to non-payment of loans. Had the banks failed, and the FDIC not had enough to pay off the account holders you would have only received a small portion of what you had in your deposit accounts... this happened in the 80's when the Credit Unions which were uninsured failed.

Some people didn't have any money in savings or deposit accounts, and had it all in stocks, so when the stock market fell, they lost many of their investment funds. This is why you are supposed to diversify. Grandma always said don't put all your eggs in one basket. There is a reason for that.

The simplified explaination is not directed at you, but it seems so many people want to rally around the people who overextended themselves and then defaulted on their loans so I have concluded that many of the ralliers just don't understand the whole process. For some reason people seem to think the bank is the one that owns the money they lend out. That is simply not true. Watch "It's a Wonderful Life" Jimmy Stewart explains it very well.

The banking crisis was not caused by people not paying back; it was caused by the Banking cartels going on a Gambling spree, unheard of in finance; bundled collateral was sold as hedge funds, one bundle of 10 million could be used in fractional banking to create 70 million in debt; then insurance company's insured the bad debt, AIG net worth 6 billion insured debt of 3.6 trillion, when the holders asked for payment, no money, no insurance and no way to pay. Glass-Stegal, was repealed in 1999, it took only 8 years to collapse the Banking system; and the same people are still running the show !

It never ceases to amaze me that those that pay little or no taxes (demanding that the so-called wealthy pay the lions share and support them) complain about the government bailing out wealthy corporations.

Interestingly, the so-called wealthy are the ones that put most of that money there in the first place; and so, are merely being bailed out with their own money and NOT money put there by the loudest whiners who, in actuality, paid little or none into the treasury.

So, how can the loudest whiners who paid the least (if anything) into the public treasury say that it is "their" tax dollars when it was never theirs to begin with?

In plain light of this simple truth, it is obvious to the simplest eye that the whiners simply do not want someone else’s money that they thought was earmarked for them (inequitably and forcibly taken under the unconstitutional and repugnant pretense of general welfare of certain classes of individuals) going to someone else -- above all, in most instances, simply going back to those who deposited the money into the treasury in the first place.

you can afford alcohol to rub in your wounds--most of us have to make due with salt--sad day for america --the middle class that traditionally has supported this country is sinking fast-

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Jo, how is Warren Buffet litterally paying less than his secretary paying a lions share??? How is the former owners of the LA Dodgers earning $108 million and paying $0 federal tax due to loop holes in the tax code paying the lions share?? How is Bill Gates paying 15% of his billions and me paying 17% of my income him paying the lion's share??? How are the rich with tax shelters, tax loopholes, tax cuts, tax incentives paying their fair share??

If you would actually study tax code you would find out that it IS the middle class who is shouldering most of the tax burden in this country. Yes, if millionaires and billionaires filed 1040ez forms they would be paying a lions share but you forget they have accountants and attorneys to make sure they pay as little as possible. Do preach to pulpit unless you are well informed about all the tax dodges the rich have!!

They certainly don't cut back of the amount of commons they use, roads to ship materials and products, utilities to run factories, airports to ship themselves and their products, the courts to defend them, legislators to do their bidding. Just like the Tea Party who stood at a national park complaining about government spending they seem to want ALL they services they think they deserve for free, except those service aren't free, we ALL should be paying to provide them for each other!!

Remember it would be easier for a camel to pass through the eye of a needle than for a rich man to pass through the Pearl Gates of Heaven!! Why do you think God said that??? Because to become wealthy means embrassing Greed and turning away from the teachings of Jesus, who told his apostles to share everything they had with with others!! To those whom much is given, much is expected (the bible) The rich cheat the middle class by bribing legislators to make tax laws that favor them, And fools like you stand up for these tax dodgers, unbeleiveable!!

Jo, how did we get to this point in our economy??? The tax cuts have been around for the last 9 years. So tell us, if cutting taxes for the rich works so well why are we in the worst economic disaster in 50 years?? Why is unemployment in the double digits if giving tax cuts to the wealthy creates jobs?? If cutting taxes has been working why have the Uber rich moved their factories overseas?? Do you really think that after 8 years of tax cuts Bill Gates is going to run out and buy a bunch of stuff, do you really think he is suddenly going to open up a new business and employee thousands of people, after 9 years of already having the tax cut?? Or is he going to continue to sit on his money and wait for the economy to pick up, just like the other top 2%.

Jo this is really just another redistribution of wealth to the upper class. Cut their taxes and they will save their money and not create one job!! However if we would have raised their taxes then they would have been force to move the money they are hoarding into their bussiness to "protect" their assets long term, thus actually creating more demand!!

blueinoregon -- what those greedy jacks never saw, while busily outsourcing our jobs and hiding behind taxshelters is that once the working class was diminished, there'd be none of us to bear the the brunt of paying taxes. they don't care, they've theirs, and are still balking at paying up.

Do you actually believe that Buffet pays less in actual dollars than his secretary? He may pay less percentage wise but he still pays a ton. Why do people who get back more than they pay in think that rich people should pay their taxes for them?

Well, if you HAVE a ton, you can afford it. Look this country has been good to these rich jerks and it's their DUTY to give BACK to this country. This is also a moral issue as much as it is a financial one.

“...the General Govt was meant merely to PRESERVE the State Governts: NOT to govern INDIVIDUALS: that its powers ought to be kept WITHIN NARROW LIMITS; that if too little power was given to it, more might be ADDED [not usurped]; but that if too much, it could never be resumed: that INDIVIDUALS as such have LITTLE to do BUT with their own States;” (in convention, Wednesday, June 27, 1787)

So, the sooner the “Federal” government gets out of the lawless business of everything for which it was NOT instituted, the better, so that the States, as the true sovereigns composing this Union, can actually govern themselves as was intended -- choosing for themselves, as is their RIGHT as independent commercial societies, how best to govern themselves according to THEIR individual varying customs, habits, morals and interests and NOT the “Federal” government interfering or being the source and facilitator of interferences with that which it was instituted to preserve -- to wit, “the State Governts”.

The problem is abundantly plain -- the People, instead of concerning themselves mostly with their own individual States, are now too involved in that which was never intended; -- not because the “Federal” government is doing that for which it was instituted, but doing MOSTLY that for which it was NEVER instituted and instead interfering with and involving itself with everything meant to be left with the individual States that is made categorically plain by the addition of the 10th Amendment so as to remove any doubt on this fundamental principle and point.

The bottom line: -- If public servants in Washington want to govern individuals, they should run for the higher offices of State legislators or Governor.

Jo, stop with the ignorant rants. Just because it was "in convention" does mean it is law or has any standing.

Section 8 of Article 1 of the Constitution gives Congress broad powers to "lay and collect taxes" and "to borrow money on the credit of the United States". You would know that if you had actually read the Constitution. People like yourself think the Constitition are only the amendments.

http://www.usconstitution.net/xconst_A1Sec8.html

Jo, since your are such a fan of the principles of the founding fathers you must agree what the republicans are trying to do with the Estate Tax is totally against the founding father's principles. Jefferson believed that allowing families to a mass wealth over generations would allow them to eventually create an aristocracy which they detested in motherland. The founding fathers felt that each man should be judged on THEIR contributions not that of the family. They posed a 90% on inherited wealth!! I agree we should go back to the founding fathers thinking!!

“There is...an artificial aristocracy founded on wealth and birth, without either virtue or talents.... The artificial aristocracy is a mischievous ingredient in government, and provisions should be made to prevent its ascendancy.” Thomas Jefferson

blue. . .As we all know Jefferson was like many people. . .great with words and poor with action.

The estate tax is nothing more than confiscating money that has already been taxed. Typical of the government, if there is a lump of money anywhere they try to grab it.

"Key to all of this is for personalities to mesh"

That would be my fear about the whole thing. I just can't imagine not being driven crazy by sharing a home with my mom and/or in-laws.

i have found "adults" who are uncomfortable having an elderly parent around hasn't quite grown up. it seems all of a sudden, they become that kid, tween, or teen sitting in a corner, sulking.

Fed up....a question for you. What would we do if there was no corporate America?

That's easy steve,

we'd all be both living in and driving camper trucks!

This is America, everyone knows we can't take care of ourselves and need corporations and governments to tell us what we need to be doing.

i applaud you! there is a serious disconnect between the elderly and the young. this is good!

yes and we got that voting republican, didn't we

Ever tried living with an ill senior, changing diapers or worse - cleaning up accidents when they don't make it to the bathroom. Crisis after crisis takes a toll. Dementia also changes personalities, difficult is an understatement. That was my mother. MIL is even more challenging, very, very controlling. Wants to tell us what to eat, when to eat it and how much. Watching network television is appalling to her, only PBS is acceptable. Only listens to classical music, loudly. Dinner has to be served on the fine china, with linen napkins and every serving dish in the house on the table. I am 55 yo. and work full time, she would not cook, clean or otherwise contribute to the household so no I am not interested in living with her. She just moved to a lifecare community and if she spends down every penny she has that is OK with me.

It can be hard to live with your aging parents, they are so set in their ways, but my theory on this is they cared for me for the first 18 years of my life, I can care for them at the end of theirs. I sure I was difficult too at times ( though mom could just put me down for a nap if I was). This doesn't work for everyone though.

Dementia is a tough one, because they can become so altered in their understanding of what is happening to them and around them. They might recognize you one moment but not the next.

Some elderly have too many complex medical issues that must be dealt with by professionals, and it that case nursing homes are necessary, but in those cases you should make frequent visits to insure they are receiving adequate care. My aunt went every day, twice a day, to feed my great aunt who suffered from severe dementia. My great aunt had much better care as a result because the facility knew someone would be there every day.

I know not everyone can do this at this level but you do need to check on them frequently and make certain they are ok.

It can be very hard to live with adult parents. We do not have that arrangement now, but did for a while (and would go back to it if we all felt it was what was needed, physically or finanicially) and though there were some times I would think 'what in the world am I doing to myself?', I wouldn't trade it for the world.

Life is what you make of it, hard is terrible...if you choose for it to be, or a blessing...if you make that choice.

Kaara, you are the exception to the rule. Most people are poor financial planners. The are leveraged with too much credit card, mortgage and short term loan debt. After I retired, I worked in one of the big banks as an investment and mortgage banker. Since I already had an MBA in economics and finance with an undergraduate engineering degree and post masters studies in economics (Phd), becoming a certified financial planner was not difficult. My experience was that most people do not budget, do not know how to assess their 401k, IRA and investment portfolio. They also fail to make timely adjustments which could take advantage of changes in economic conditions which affect their investments. When the market crashed in late 2008, many of these people lost a significant portion of their retirement equity while their real estate equity declined rapidly. It was a perfect storm of economic collapse. Without government intervention, the recession which is technically over, could have become much worse. The problem is now we have a jobless recovery.

Commendable job ....kaara....I graduated High School in 1974....I remember having to take "Home Economics". I actually paid attention. The teacher taught how to balance a checkbook, make a budget based on your income, not to go above 30% of income for housing (mortgage or rent), making priorities in life. By the time my kids went to school ( 2000 & 2005) those classes weren't taught anymore. I took it upon myself to teach them those same principles.

If you spend more than you make every week and depended on a rising equity in the value of your home to be your "retirement" account.....you made some bad choices.

After my Dad passed away, my Mom's health started failing. I moved from NY to Florida to care for her. Whatever time she had left, she would spend in her own home. We had the best time....I feel bad for folks that don't have that kind of relationship with family....God, Family, Business.....it worked for me.

Good for you Mike....you are a good son. I'm not saying my children wouldn't take care of me, I'm just saying I don't want them to, as they have families and lives of their own. I would prefer to be in a good adult living facility with people my own age, or in my own home if I'm fortunate enough to be

in budhist thought, you choose your life before you are born to it.

true, not everyone comes from a functional family, so make lemonade with those lemons, right -- this is what my son used to say? i come from a dysfunctional family(multi-gen) as well. and i'm happy to look after my mum. as a gentleman noted earlier, they took care of you when you were not able...

blueingoregon, one word - Ridiculous! The stock market has been and always will be -- a HUGE Gamble! Further, once you're nearing retirement, you are supposed to move your "HIGH Risk" investments to Moderate and Lower Risk, and once you actually retire, you're supposed to move ALL your investments entirely OUT of the market all together.

As an investor, it is up to the investor to decide what he/she wants to do with their investments when they see an Up-turn or a Down-turn in the economy. Blaming politicians for something they have absolutely no control over (YOUR investments) is pure folly. Blame your financial adviser, but don't blame politicians for this one.

It's time for Americans to take personal responsibility for their own actions.

Sandra, I agree with most of your advice, but in recent years more investment counselors are recommending that even after retirement, a small part of your savings should be in equities.

Peter17, yes, I stand corrected. :)

Blueinoregon...the average person cannot be counted on to invest their own money wisely. Most of them wouldn't save a dime if it was up to them, so the forced savings created by the SS system will at least insure that they have some income upon retirement. I personally don't think that the government will ever be able to eliminate this benefit without a huge uprising of senior citizens. The problem is how to continue to fund it going forward so that our children can have the same advantage. That will be a challenge.

we need to write to our representative, EN MASSE. they need reminding of what public servant means.

Kaara, the answer is remove the cap on the SS tax. It is that simple!! That is how we fund SS. Why there is a cap on of $106,000 is rediculous!! Even though John McCain has billions (his wife's) he is still drawing SS. So if the millionaires and billionaires are going to continue to draw on it why are we capping it??

Good point blue...I second that and would have been happy to pay my share.