From The Morning Call:
So far this year, both the State Employees' Retirement System (SERS) and the Pennsylvania Public School Employees' Retirement System (PSERS) have lost billions of dollars in the stock and bond marketplace. In fact, SERS lost $1.48 billion just in January.Even if you aren't one of the growing number of RELOCs (Retirement Equity Liberators On Credit) what's left ain't gonna feed the cat.
These losses do not include the gigantic stock market losses of March in which Bear Sterns almost declared bankruptcy. The Bear Sterns incident, combined with the ongoing subprime mortgage dilemma, resulted in the largest investment losses since the 9/11 disaster.
Scramble for Cash
After a long binge of borrowing, U.S. consumers face a credit crunch and a sagging economy. To sustain their living standards, many Americans are doing what comes naturally: scrambling to raise more cash.
More in this WSJ article. A must read.