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Old 01-13-2010, 06:28 AM   #1
peaceandlove
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Thumbs down IRA’s and 401K's to be used to provide capital to the US Treasury market?

401k/IRA Screw Job Coming?

Friday, January 8. 2010
Posted by Karl Denninger

Now this is a guaranteed rape job.

In a short conversation this noontime that CNBC apparently has omitted from their archives (Why's that folks?) Rick Santelli was talking about a potential to effectively force money into the Treasury market.

Where would they get this?

From your 401k and IRA accounts!

From Businessweek: http://www.businessweek.com/news/201...-ici-says.html
The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are spearheading the effort
.

Let me tell you what this is - it is an attempt to prevent the collapse of the Treasury market!

Continues: http://market-ticker.denninger.net/a...ob-Coming.html
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Old 01-13-2010, 01:35 PM   #2
peaceandlove
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Default Re: IRA’s and 401K's to be used to provide capital to the US Treasury market

Excerpt:

Instead of "Yes We Can" the slogan for the Obama Administration should be "Over One Million Fat Cats Served."


Obama Administration Wants to Annuitize 401k’s and IRA’s - Mandatory “R Bonds”

Catherine and News & Commentary, January 11, 2010 at 8:01 pm
by Jesse

As a rule of thumb, the worst possible time to convert lump sum savings into a fixed income annuity would be when interest rates are historically low.

Although products may vary, this is roughly equivalent to buying long term bonds at a time when interest rates are likely to increase, substantially reducing your principal in real terms, and eroding your fixed returns through inflation.

For some reason the Obama Administration is promoting the idea now that there should be some encouragement for Americans to start converting their 401K’s and IRA’s into annuities, to provide themselves with lifetime income.

The effort is being spear-headed by Mark Iwry of the Treasury and Phyllis Borzi of the Department of Labor. Here is a paper written on the subject by Mark Iwry when he was at the Brookings Institution.

The essence of this paper is that distributions from IRA’s and 401K’s would automatically be rolled into an annuity providing a monthly income by default.

This concept is known on the Street as the handling fees for meager returns pork barrel pigfest. The Fed likes it because they will undoubtedly get a two year rolling chunk of the people’s retirement cash to play with.

Continue reading the story at Jesse’s Café Américain. . . http://jessescrossroadscafe.blogspot...401ks-and.html

SOURCE: http://solari.com/blog/?p=5703 Catherine Austin Fitt's Blog
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Old 01-13-2010, 03:35 PM   #3
Raven
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Default Re: IRA’s and 401K's to be used to provide capital to the US Treasury market

This "proposal" can only mean one thing - Treasury smells smoke. Maybe you should pay attention to what they're huffing! (Quote)
Let them burn i say!!!
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Old 01-13-2010, 04:02 PM   #4
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Default Re: IRA’s and 401K's to be used to provide capital to the US Treasury market

Quote:
For some reason the Obama Administration is promoting the idea now that there should be some encouragement for Americans to start converting their 401K’s and IRA’s into annuities, to provide themselves with lifetime income.
Now that I find hilarious!

Too late, Jerks!

We already converted out 401k and IRA into house payments.

They can't steal from me, what we already poured down the toilet

Fred
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