Funding America's retirees

"More than a quarter of Americans with 401(k) and other retirement accounts are dipping into their nest eggs early to pay for current expenses, exacerbating concerns that future retirees could be impoverished if the government cuts Medicare and Social Security benefits." [The Washington Post]  

Where will the "funding" for America's retirees come from in coming years?  Most likely from the stock market itself.  This is a major reason why Fed chief Bernanke, unlike his predecessors, views the equities market as the prime beneficiary of his monetary policies.  The federal government has also made stock market liquidity/support a top priority.  Equity market strength has now become official policy for both branches.

Notwithstanding the possibility of a bad year for stocks in 2014, expect to see rising equity prices in the years ahead -- especially as post-2014 inflation kicks in.