A 20 to 30% drop in the market could be very serious if youre retiring anytime soon and given the lack of industrial long term investment because of the markets obsession with short term profit a drop in the market could be a long lasting affair wreaking havoc on the 401 k's of a lot of boomers who will be retiring soon. That and the decreasing national revenues and increased military spending and failing infrastructure will likely lead to a more cuts in our safety net at precisely the time when it is most needed.
Not to mention the hidden derivatives market may have a few surprises for us yet if a drop in the market collides with some other unforeseen market event involving say the unprecedented level of student debt or maybe a catastrophe in the commercial real estate market given the death of retail space brought on by the likes of ebay and Amazon.
I'm not quite as confident in the ability of our financial markets to recover from a drop quickly enough to sustain a decent retirement for the huge number of boomers who are about to become retirees. Besides what earthly reason can be given for further deregulating financial markets? They've shown us that they have learned to behave with prudence and honesty since the disaster of 2008?