Forced retirement account bill now in the Senate.

Going down the road of Argentina...

The Treasury market will soften up when the economy rebounds. With the budget deficit already at 10% and debt-to-GDP at ~100%, America can't afford a 5% vig on it's outstanding stock. In their view, better to confiscate 401K's and monetize the rest, than let the wheels fall off and let the market correct, naturally. Unfortunately, this just buys another 12 to 24 months! They wouldn't resort to half-measures unless they were desperate. Unbelievable. Most ET'ers haven't a clue...

This is totally reminiscent of FDR's gold confiscation. Herd private cash into Treasuries then monetize the debt away = a 50% haircut.
 
I thought we already had that. Social Security is a forced retirement account. Only thing is, Congress robbed the account!!!
 
^^

SS went net negative, this year. The pyramid is collapsing. Congress needs fresh meat keep a bid under treasuries. So now they want our 401K.

People don't get it. America will n.e.v.e.r. see high interest rates again. It's done. Private, Corporate and Public debt levels are *maxed* out. It's likely we'll get a recovery in the private sector, but nowhere enough to offset a 5% vig on an 18 Trillion national debt. Just to eliminate the budget deficit through growth alone, the private sector must expand by >60%!! We slash spending now, and this joke of a "recovery" implodes. The stimulus wasn't TARP or Maiden Lane. It's the budget deficit.
 
Can you only imagine what would have come of America had John Kerry been elected?:eek: :eek: :eek:

The ultimate retirement time bomb=the IRA.

It's absolutely stunning to read this and wonder just WHEN will the people take America back by force?
 
All I know: it will end badly....and soon!!

The point of no return was 1995-2000'ish when outsourcing and the deficit took off, while rates plummeted...
 
Quote from achilles28:

^^

SS went net negative, this year. The pyramid is collapsing. Congress needs fresh meat keep a bid under treasuries. So now they want our 401K.

People don't get it. America will n.e.v.e.r. see high interest rates again. It's done. Private, Corporate and Public debt levels are *maxed* out. It's likely we'll get a recovery in the private sector, but nowhere enough to offset a 5% vig on an 18 Trillion national debt. Just to eliminate the budget deficit through growth alone, the private sector must expand by >60%!! We slash spending now, and this joke of a "recovery" implodes. The stimulus wasn't TARP or Maiden Lane. It's the budget deficit.
More...
I agree interest rates will stay on the floor for a long time, but never say never. When the baby boomers start retiring en masse (a decade + away) and drawingdown their savings, interest rates should rise a bit. Otherwise the US is in for a Japanese experience with ultra low interest rates indefinatly, post peak indebitedness and economic productive capacity. Then again debt service on the national debt may rise to 40% of the gross tax revenues by 2015, causing greek style crisis. who knows
 
Forgot to add, the IRA is a timebomb because of the tax deferral. Most mom and pops with traditional IRA's 'think' they will be able to retire into a lower tax bracket. Guess what? That ain't happening!

Add Estate taxes to the above problem on anything over 1M, and the family transfers dust instead of money to their family at death. Gotta love "freedom." So sad...
 
Quote from achilles28:

All I know: it will end badly....and soon!!

The point of no return was 1995-2000'ish when outsourcing and the deficit took off, while rates plummeted...
More...

Agreed!
 
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