Anyone's thoughts on gov't 401K confiscation? Maybe a conspiracy idea, but what if? Didn't Argentina just do it? Many years ago before this market down (and this election), I was wondering how the gov't (no matter which party) could just look at 401Ks salivating at all that money, esp. Roths with no tax on any increases over the years.
I could never believe that the gov't could just leave them alone for years and decades.
Wondering about this, I did find a table that indicated 50-80% of the US population were currently in the stock market to some degree (indi stocks, mutual funds, etc). Prior to 401Ks (60-70s?), what was the percentage.....25%?
One of the ideas I actually heard from an economist type was "we'll restore 401Ks to the August pre drop levels and then take them over investing in treasuries and "guarrantee 3% + inflation." Besides this general horror, wouldn't this huge decap of the market be beyond catastrophic?
The US government is going to need money desperately - rumours on the blogs say USD 3 Trillion already in 2009 - and I can't imagine anyone stupid enough to lend it to them!
The pension savers can be forced to buy treasury bonds.
The market is sort-of over anyway with all than intervention going on and once stock prices go lower people will stop caring.
Sheesh. That would be a shame. What blogs would those be?
I think I would actually cry if/when that happens. As if it hasn't happened already, I would feel so used, lied to, baited and switched and I can't get totally out without a huge tax and penalty hit....probably their ultimate backstop when they created these things in the first place. If it happened, I would do the absolute minimum and concentrate on my indie stocks and funds.
The Financial Ninja is a collection of my thoughts and opinions about current economic and market conditions. These are not buy and sell recommendations. Use your head and do your own research. This is a forum to stimulate discussion and debate.
I started trading during the tech bubble when I was still in high school. My trading has financed my education and I have since completed a BA in Economics and an MBA with a concentration in Finance. I have worked as both a proprietary equity and fixed income derivatives trader.
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Anyone's thoughts on gov't 401K confiscation? Maybe a conspiracy idea, but what if? Didn't Argentina just do it? Many years ago before this market down (and this election), I was wondering how the gov't (no matter which party) could just look at 401Ks salivating at all that money, esp. Roths with no tax on any increases over the years.
I could never believe that the gov't could just leave them alone for years and decades.
Wondering about this, I did find a table that indicated 50-80% of the US population were currently in the stock market to some degree (indi stocks, mutual funds, etc). Prior to 401Ks (60-70s?), what was the percentage.....25%?
One of the ideas I actually heard from an economist type was "we'll restore 401Ks to the August pre drop levels and then take them over investing in treasuries and "guarrantee 3% + inflation." Besides this general horror, wouldn't this huge decap of the market be beyond catastrophic?
Brant, Atlanta, GA
The US government is going to need money desperately - rumours on the blogs say USD 3 Trillion already in 2009 - and I can't imagine anyone stupid enough to lend it to them!
The pension savers can be forced to buy treasury bonds.
The market is sort-of over anyway with all than intervention going on and once stock prices go lower people will stop caring.
Sheesh. That would be a shame. What blogs would those be?
I think I would actually cry if/when that happens. As if it hasn't happened already, I would feel so used, lied to, baited and switched and I can't get totally out without a huge tax and penalty hit....probably their ultimate backstop when they created these things in the first place. If it happened, I would do the absolute minimum and concentrate on my indie stocks and funds.
Brant, Atlanta, GA
Luckily, my company has self-directed account so my 401K is in Rydex Inverse SP500.
What's in your wallet?
Mark it down, the government WILL eventually tax those Roth IRAs and 401ks. One of the main reasons I never contributed to them.
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The government will tax your 401(k) payments the day after it takes away Social Security and Medicaid.
Too much entitlement built into the beneficiary class, which is one demographic robust indebted enough to sink our entire Batleship.
Take away the American investment dream and exuberant wealth creation dies. Even Pelosi is not that crazy...
Las Vegas Sands management will probably be in D.C. by Monday standing in the bailout line. Who will be next?
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