The 5 biggest lies on Wall Street - 5 (zt)

卜丁

Big Lie No. 5: Buy a flat-screen TV, save the economy
Maybe the biggest lie about to be foisted on people is that they should go out and shop to save the economy. Wall Street wants you to spend to pump up the economy. Much of the federal stimulus package enacted this week entails tax breaks and handouts to get people spending.

But it's really just another big lie to tell people they'll make a difference if they go out and shop.

The problem is that the economy is going nowhere -- no matter how much anyone spends -- until someone comes up with a plan to give the banks enough of a capital cushion so they start lending again. So far, we haven't seen that happen.

So play it safe. Hold on to your money. Most of you need to save more for retirement, anyway.

According to McKinsey Global Institute, two-thirds of baby boomers are unprepared for their golden years. Most of the boomers who are unprepared have a net worth of less than $100,000 even though they are just years away from retirement.

If you are younger, don't smirk. You need to save, too; otherwise you'll end up like them.