tag:blogger.com,1999:blog-1592992209402300549.post2871648269114949059..comments2024-03-28T08:06:43.198-04:00Comments on The Silicon Graybeard: Our Number of Options is DecreasingSiGraybeardhttp://www.blogger.com/profile/00280583031339062059noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1592992209402300549.post-10309062547493686842011-03-11T19:20:32.771-05:002011-03-11T19:20:32.771-05:00BS - I'll be the first to admit I may be naive...BS - I'll be the first to admit I may be naive or stupid, but I think that any move to grab the 401k accounts will be seen. The financial advisor market and all the companies that make money managing 401ks are watching that like a hawk, since it will put them out of business. <br /><br />So I expect there will be a real outcry, "wailing and gnashing of teeth". I think that such a bill will raise a lot of ruckus before it passes and then there will be some sort of period before it happens, since most laws go into effect on the first of the fiscal year, or at the start of the second quarter - something like that. If that looks like it's even getting close to a vote (you know they won't put things up for vote until they know they win) I'm pulling my bucks outta there.SiGraybeardhttps://www.blogger.com/profile/00280583031339062059noreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-70909140159527625992011-03-11T00:52:36.235-05:002011-03-11T00:52:36.235-05:00Inflation is the favorite tool for getting out of ...Inflation is the favorite tool for getting out of these messes. I keep leaning towards fast (though not hyper) inflation, but it may be too late for that, so yeah, I can see other outcomes. I hope it doesn't come to that.<br /><br />So, Graybeard, RE taking that tax hit, what are the warning signs you're watching for? (If you don't mind sharing them, no disclaimers needed, you're not giving investment advice, we know.) All I can think of is an rapid acceleration of the downward spiral.BS Footprinthttp://bsfootprint.comnoreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-77536837287466327482011-03-10T18:22:12.219-05:002011-03-10T18:22:12.219-05:00Bogbeagle, excellent comment and summary.
I'v...Bogbeagle, excellent comment and summary.<br /><br />I've written about our 401k accounts being seized a few times before, and I'm basically watching for more of a warning sign before I pull the plug and take the tax penalty. I think that seizure is a certainty, within the next one to two years (and, yes, there's a risk that if something bad like an actual dollar collapse happens, it won't be possible to get that cash, but it will probably be worthless at that time).<br /><br />"Parasites at the top and leeches at the bottom" is an excellent choice of words.SiGraybeardhttps://www.blogger.com/profile/00280583031339062059noreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-14481578190287038612011-03-10T13:27:51.575-05:002011-03-10T13:27:51.575-05:00I think that total US' liabilities amount to $...I think that total US' liabilities amount to $300,000-odd dollars per capita. That's when you take unfunded liabilities into account ... public-sector pensions, future health costs and so forth. Not a hope of dealing with that, especially when you consider the comparatively small proportion of your population which is actually productive.<br /><br />I predict a "fire-sale" of epic proportions. A rush to privatise land, buildings and services. Of course, this will be coupled with back-pedalling on all the promises made to gullible voters ... Free Health Care, Generous pension and so on. Very likely, you will see your pensions and savings sequestered, too. Just a few weeks' ago, the Hungarian government effectively Nationalised all private pensions; using force, the only tool in the State's toolbox.<br /><br />We're seeing it now, in the UK. Just today, the Public Sector is being told to expect much-reduced pension entitlements and the prospect of working for a further TEN years before retirement. Instantly, of course, there are the threats of strikes and civil unrest. Those sucking at the teat of State will fight to defend their "right" to keep on feeding ... all the while ignoring the reality that the rest of us are being compelled to fund their lifestyles.<br /><br />One way or another, the State has to shrink. It won't do it willingly, of course.<br /><br />We have parasites at the top and leeches at the bottom. Each group is supping at the feast which is provided by the productive middle. I say provided, but I really mean "coerced from".<br /><br />Coupled with the impending shortages in energy and raw materials, I expect that we are heading for a truly "perfect storm" of global proportions, within the coming decade. I just wish that I was 20 years younger, so that I can see how this pans out. (Assuming that I'd be one of those who is lucky enough to survive.)<br /><br />Hope this cheers you up.<br /><br />BogbeagleAnonymousnoreply@blogger.com