Sep

3

Today (September 2cnd) is the anniversary of ERISA - the legislation passed by Congress and signed by into law by President Ford - and the creation of the IRA. In 1981 ERISA was amended to allow 401(k) plans.

This was the most important single cause of the 25 year bull market that produced our present world.

The legislation provided (1) an added supply of cash to the markets from investments by IRAs and 401(k) plans, (2) a safe haven escape for corporations from the inescapable accruals of defined benefit pensions, and (3) the ability of corporations to use their own paper instead of cash to fund present employee bonus compensation and retirement obligations.

We will know the party is over when ERISA accounts begin loading up on cryptocurrencies.


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