You are the steward of your 401k. After Enron, I warned everyone I knew that these people were playing fast and loose with the rules. Sure, Phil Gramm got a few things through in the late 90's but once the Bush free marketeers got into it, it was just nuts. I think Goldman Sachs was leveraged 33 to one for god's sake. Hank Paulson him self got the SEC to change the rules that he took advantage of, and then when he became treasury secretary, basically bailed himself out.
You don't have to be a genius to know if you pile up a bunch of money and don't pay anyone to guard it, it will disappear. The Bushies did this with cold hard cash they sent to Baghdad on pallets! Billions if cash right from the US Treasury. Then, they did it 1000 times bigger with credit default swaps and unregulated insurance instruments. The average 401k guy gets told to buy and hold, the long run is good, stay in stocks if you're young, yada yada yada... Meanwhile, they're pocketing your money, buying jets and private islands in countries with no extradition, no income tax, and no minimum wage.
Just imagine what would have happened if we fed this GOP genetic mutation our social security funds.
So, is the 401k a bad thing? Should you be buying in right now? Well, you can get some good stuff cheap right now. But the next time you smell a bubble, put it in a money market fund. I wish people had the option of just going into an index fund with no fees. In the long run, that's better than all that damn day trading anyway. But who knows... It could be Mad Max world soon, in which case you'll want to invest in sharp boomerangs and gasoline.
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