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Few people are more senior seventy, provided with plans of category DC, explain, why this defect in the law has had such insignificant influence on the market. But by 2016 when by the first of 75 million be-bi-bumsrov it will be executed seventy, the majority of them will have pension plans of category DC; every year the number of such people will grow all faster. When the rich daddy formulated the prophecy, it did not use maps of Taro or tea leaves to glance in the future. It used change in the law, time, market experience and that fact that in the course of time people become more senior. In other words, he was not engaged in a guessing, and analyzed the real facts.

The offer and demand

The price of actions, contributions to mutual funds, bonds or any other this sort of papers grows until buyers more than sellers. Between 1990 and 2000 years the share market was on lifting because on it has come much bebi-bumerov at the age from 30 till 50 years which were saving money for the pension plans of category DC. The similar boom was observed in 1970th years when bebi-bumery left a parental shelter, ended colleges and started to buy the first houses. You, probably, remember general insanity on the real estate it mania which has ended with a panic and a collapse after interest rates have passed for a mark of 20 percent. Interest rates should be lifted to slow down the inflation called first of all by that in the labour market has appeared 75 million bebi-bumerov and they had money which burnt down with it pockets. In other words, 75 million the persons buying all that it, necessarily call boom. Also the return is correct also: 75 million the persons selling everything that at them is, will necessarily call a collapse. So the base law of economy it the supply and demand law says. Within the next several years, but is the most correct by 2016, people will start to understand (if yet have not understood) that the share markets will grow not always for 20 percent a year as it was in 1990th years. Unfortunately, millions workers or will not refuse the plans 401 (k) or IRA, or will make it only after will be too late. Millions bebi-bumerov not begin to sell in advance even if will know about a forthcoming collapse of the market as it will be prevented by the penalties established by the government for preschedule withdrawal of deposits. Therefore, instead of withdrawing means, they remain in the market and will be engaged in a diversification, that is a rearrangement of money from one mutual fund in another, searching for the following advertised safe refuge. The majority of people have already understood that have got to a financial trap, but still do not realise all scale of consequences of defects in the law. When such comprehension will reach a critical point, the panic will begin and people will rush to rescue the pensions and the zhiz-. But, as it is regrettable, no diversification will rescue them from crash of such scale.

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