I am not an economists nor do I have any special financial expertise. What I do see in the stock market crash and the resulting “bailout” is the equivalent of a giant scam perpetuated by “our” Federal Government. Decades ago there began a drumbeat of propaganda and programs for the average and professional employee to deposit a portion of their income into the stock marked for their retirement. The idea was that companies could radically modify (or drop entirely) their pension plans because the employee would still have their own “individual” retirement plan which they could manage themselves (and presumably maximize their retirement income). Private companies loved it because they no longer had to maintain and manage a costly retirement program. The individual retirement programs morphed slightly as problems were discovered into the present day ones.
In my individual case, my IRA funds have decreased by 30% of what I had saved. It is a little difficult to determine just how many years I had to work to save what has just disappeared in the past few months. I feel as if I had been raped by an unknown force.
When I look at the national level (Congress, private and semi private organizations, and the President), I see no culpability expressed by any of the involved actors. No one is headed for the slammer. Our national debt has been doubled or increased by at least 50% (no one seems to know at this time) by their actions.
However, the main actors in this dispickable drama are rewarded by being inundated by my and your tax dollars. Not only are they rewarded, but it appears that the obviously guilty perpetuators are going to receive bonuses paid with our tax dollars! In addition, we have to listen to the gas bags in Congress that oversaw our descent into confusion tell us how the are going to clear away the rubble (as if they had the skill to do so).
And in conclusion, we (I) am going to let them get away with it (unscathed!)
As for your IRA; if you are retired and invested with the objective of GROWTH you must have had your income met from another source. Generally retirees change their objective to Safety, Income, Liquidity and lastly growth once the paychecks stop. Although values are down, investment cash flows are generally holding up. Selling may make you feel better for now if you can't afford the ride.