Turbulence On Treasure Island

Stock market exasperates ThePrivateers. First, some background. Reuters (04.20.05):

"The blue-chip Dow average and the broad Standard & Poor's 500 sank on Wednesday to six-month lows as a jump in March consumer prices fanned fears of inflation and steeper interest-rate increases ahead." Dow, S&P 500 Hit 6-Month Lows

The NYPost is exasperated too. (04.21.05):

"Try finding an expert back in early January who thought the stock market wasn't going to do well in 2005. Now that everyone was so wrong, try finding anyone who will even offer an opinion. Well, glad you asked: I'll give you mine in a minute. If things continue the way they have been investors will be in pain by the time professional traders try their next miraculous year-end rally." Stock Market Is Scary Place To Be

NYTimes is unperturbed. (04.21.05):

"Markets go up and markets go down. But the slide over the last month on Wall Street is hardly good timing for President Bush, who now finds himself with another issue to explain as he struggles to win over public opinion - and the votes he needs in Congress - for his proposal to add investment accounts to Social Security. In financial terms, the decline is not extraordinary. The economic backdrop, though, is looking more troubled than it did a few months ago, and the markets are reflecting concern about high oil prices, a pickup in inflation and growing budget and trade deficits." Down Market Casts a Pall on Social Security Plan

In a nutshell: Irwin M. Stelzer, "a conservative commentator and the director of economic studies at the Hudson Institute, a research organization" says, "'You are seeing a Republican Congress saying to itself, 'He doesn't have to run again.' And the market is working against him.'" When you retire, The President's plan would require that you use your dough "to buy an annuity, a contract giving (you) a guaranteed stream of income for life". "How much (you) receive would be affected by how the market is doing when (you) retire." If the market's up then, you're gonna do well. If it's down, well, not so well. If it tanks, maybe the kids have a spare bedroom. "The White House plan would seek to reduce the problem by encouraging workers to shift from stocks into bonds as they approach retirement, although even the safest government bonds are not immune to substantial price fluctuations." Clint sums it up: "(Y)ou've got to ask yourself a question: do I feel lucky?"