Comment: Three trillion in what?

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Three trillion in what?

The most recent report I found (http://retirementincomejournal.com/upload/567/ICI_Retirement...) shows almost 5 trillion in retirement accounts but only ten percent of that in cash, so around 500 billion. Some is in insurance products but the bulk of it is in the stock market.

And *total* market capitalization is around 15 trillion so retirement account investments actually represent something like 25% of the stock market. That's why I don't think it makes much sense for them to seize 401k accounts. What they need is cash, and they can't turn those 401k assets into cash without crashing the market.

But also because they have other options. They can change the rules any time they want. They can start taxing money that comes out of retirement accounts. They can change the rules to create incentives to take money out earlier as a taxable event, which would be short-sighted but would accelerate revenues. They can create a government-backed annuity product and give employers an incentive to make that the sole option for new 401k plans. There are lots of things that make more sense (in a grabbing-the-money way, not good economic sense) than confiscating retirement accounts.