Yes true, isn't its? This has been expected for some time. Even Warren Buffett explicitly warned about the potential for exactly this scenario ten years ago.

It is true that the theory and logic itself is nothing new. What is noteworthy this time is that they are finally not going to be able to hide it anymore. People are expecting such-and-such amount next week, say, and they are going to get a check for only 30% as much.

I expect they will let the boomers with pensions take it in the neck first. Worked since 1965 at United Widget and expecting your cushy 50-k-year-for-life? Sorry. How does $15 K sound? What's left of the "investing public." They will be trimming the fat from the upper-middle-clasess now, the Elite Finance Beast is very very large and very very hungry must be fed. It has already destroyed the middle class and now its time for the upper-middle-class to take it hard. All those doctors and lawers and country-club men, legions of loyal officeworkers and high-end factory workers; successful small business owners and investors and small-scale entrepreneurs. Hard workers and smug bastards alike.