We don't usually have any TV economists talk about what happens to an investment the day after.
The history story puts in the pile of "scam" or "Ponzi scheme" and often puts the blame on the investors for putting money into something that was fishy. Sometimes, if lots of govern-cements put money into it, they instead say, "no one saw this coming"
But, with all of the regulations and regulatory agencies, how did Ponzi do what he did? How did Enron do what they did? How did Madoff do what he did? Either the regulations and regulators are ineffective. (even with the Infernal Revolting Syndicate and the Federal End-table of Intimidation crawling up everyone's asses) Or they are in on it. Regulatory fines are just a form of profit sharing.
What will happen when the really big scams leave everyone without a retirement account?
What happens the day after most of the financial industry is shown to be a scam?
The stock market
The only way that you own stock in a company is to buy it from a broker, than have it transferred to your possession. (this can be a pain in the ass. Brokers DO NOT like to do this) and then, after you get the actual certificates, you call up the company's lawyers and register your stock with them.
If you do not do this, you do not own anything.
Well, to be specific, you own a promise on a promise on a deal, to buy a stock at a certain price, or your money back.
If any of that chain breaks, fails, goes out of business, you don't even get your money back.
Cede and Company owns all the stock in the stock market. ALL of it.
The problem with the stock market is that brokers use baskets of stocks to back their shorts with. And, it is so easy to have to sell part of that basket. Meaning, the stocks are in two places at once. And it is so easy for the extra one to continue existing.
The day that all these extras are exposed (it is already well known due to court cases) is the day people lose faith in the stock market. And the day the stock market will close.
But, even if we switch to tokenized stocks, right now, we will have to deal with who owns the stock. And, so many will be found to hold nothing. BlackRockStone will be found to own all the shares outstanding, or Cede won't let the stocks out.
Basically, the day after, all the little people will be found to own no stock.
The bond market.
The bond market exists because of money printing. If the printers print too fast, the "money" becomes to worthless. If the printer prints too slow the bonds become too expensive. If real money comes into existence (like bitcoin or a asset backed money) bonds disappear.
Bonds are the backbone of the retirement industry. The fixed income part, where people actually get paid out without burning their principal. If bonds disappear, so does retirement accounts.
Even worse there is a trust part of bonds. If people do not trust the "currency" that the bond is payable in, people will dump those bonds (as China is currently doing with The US Bonds) and this causes the bond market to drop.
Basically, the bond market is a huge balancing act. And when it becomes too unbalanced, crash.
The question in bond people's minds right now is will the Fed drop The US Dollar to save the bonds, or drop the bonds to save The US dollar. The current consensus is that the Fed will drop The US Dollar.
But, either way, the retirement fund is doomed. The day after, you will wake up owning nothing, or wake up having a bunch of worthless paper.
The bank accounts
It is not your money in the bank, it is their money. (you gave it to them) And the banks are under no obligation to give it back.
What is worse, is the bank doesn't have enough currency. They already lost it all.
And worse, there was never enough currency since the first fiat note was printed.
Right now, the music is still playing, but that can change overnight.
Today, the banks are open. Tomorrow they may be closed.
And, they will be closed at some day in the future.
It is inevitable. There is never enough currency, in a fractional reserve system to pay off the debt created.
So, your bank accounts, your money markets, even your segregated accounts will all disappear. Literally overnight.
This is the financial system we live in. A bunch of banksters all saying that everything is solid. That these are not scams.
That it is safe as money in the bank.
The entire system is an illusion. And all that is needed is for some little dog to pull back the curtain.
We are so close to the end of this farce.
A bright future is ahead of us. We will see the return of real money. Or something better.
However, right now, all of the retirement accounts have been stolen, and everyone has been debted up to the eyeballs, and we are going to wake up one day and notice everything is gone.
For those with no money, it may be the best thing ever. For those relying on their retirement savings to live, they will be left destitute.
The thing is, everything will look like it is going along just fine, and then, the day after, it will all be gone.