A reader asked me clarify what was meant by “exiting the market.” It’s important to know the difference between exiting the stock market and taking distributions from their tax-deferred retirement accounts (IRAs, 401(k) accounts, and so forth.) It is possible in most cases to exit the stock market without taking distributions from those accounts. They can simply change (“re-allocate”) the investments inside those accounts. For example, an employee might re-allocate her 401(k) at work from a stock mutual fund into a money market fund. This is not a taxable event, as long as the money remains in the 401(k) plan.
G.G. sent this: Roubini Says Q3 Growth in U.S. to Be `Well Below’ 1%
Another from G.G.: U.S. Heading for Currency Destruction Debt Default Great Depression
A Daily Bell Interview: Steve Forbes on Overseas Wars, the Coming Gold Standard and the Rise of ‘Citizen Agitation‘
B.B. recommended this piece by D. Sherman Okst: Why We are Totally Finished.
Also from B.B. comes this piece in The Wall Street Journal: Existing-Home Sales Plunged in July.
Items from The Economatrix:
Ambrose Evans-Pritchard: Fresh Flight to Swiss Franc as Europe’s Bond Strains Return
Tarpley: China Buys Euros as Fear of World Depression Grows
Another Blow to US Housing Market
Why There are No Jobs in America
Sen. Bennett: Trillions in Debt, Nothing to Show for It
The Housing Collapse: We Ain’t Seen Nuthin’ Yet!
Bob Chapman: The Economy When Debt is Everywhere
Financial Expert Warns of Economic Collapse