No. of Recommendations: 3
Pos: "I don't know the answers....but it seems that the problems presented from unit size on up are not specific to one household, one county, one region, one country....thus I think the "fingers of instability" may be quite apt."

I have no answers but the U.S. budget deficit is relatively large and growing:

https://www.cnbc.com/2018/10/15/us-budget-deficit-expands-to...

The trade deficit is large and growing:

https://www.cnbc.com/2018/12/06/international-trade-surges-t...

U.S. household debt is large and growing:

https://www.reuters.com/article/us-usa-fed-debt/u-s-househol...

Corporate debt is large and growing:

https://www.google.com/search?q=corporate+debt+u.s.&oq=c...

Jgcspouse's state pension is 75% funded which sounds good but it used to reach 100% in bull markets and we are in the late stages of a deficit fueled bull market and only 75% funded:

https://www.fredericksburg.com/opinion/editorials/editorial-...

I will be fully retired 12/31/2018 and that is the economic picture that I am dealing with.

So:

We sold the beach house and put the proceeds into cash in an FDIC insured account presently earning 1.25%.

I undripped my main investment accounts in October of 2017. The result is that they are accumulating cash which causes my one year returns to fall behind every time the market surges and to catch back up every time the market drops because we have 'too much cash'.

My whole life insurance policy just reached the point where dividends pay premiums so I revamped it to let dividends pay premiums until our income reaches the point that we can cash it without paying a big tax bill. In the meantime, we no longer spend money on the whole life policy (except for the fees) while is grows without adding to our tax bill.

We are going to withdraw about 3% from our deferred accounts and put that money into cash partly to protect ourselves from over sized RMDs when we turn 70 and partly to increase our cash buffer in early retirement.

I cannot help but think that wendybg and I are not the only boomers who are starting to batten the hatches with reduced spending and increased savings in a country fueled mostly by debt.


So...

How will this unwinding compare to 2009?

I don't know.

But my personal defense will be increased cash and reduced spending.
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