Moody's downgrades Hungarian debt, Gov steals private pensions (Model for 401-K theft here?)

BUDAPEST, Hungary (AP) - Credit ratings agency Moody's downgraded Hungary's government bonds by two notches on Monday, citing worries about public finance policies and exposure to foreign financial shocks, such as the European debt crisis.

Prime Minister Viktor Orban's center-right government has committed to budget deficit limits set by the European Union but has resorted to unusual methods - including special taxes on banks and energy, telecommunications and retail companies - to reduce the deficit below 3 percent of GDP in coming years.

The government is also planning to fill budget holes with some $13.3 billion (euro10 billion) accumulated on private pension funds.

People opting to stay in the private pension scheme instead of transferring their savings and all future contributions to the state system by the end of January will lose 70 percent of their pensions when they retire, Economics Minister Gyorgy Matolcsy said last month.

If you smell blood in the water, I would recommend taking a hardship withdrawal. My advisor has warned me about touching my 401(k), but I explained to him that if the government passes reforms that tax or otherwise touch 401(k)s, he should be prepared for a glut of people asking that same question.

If you take a hardship, they assume you’ll pay it back, but if they get something passed that guts 401(k) savings, at least you’ve got your money before they can take it from you.

That’s my view on it, anyway.

Not only in Hungary they are doing it in Ireland,France, Argentina as well taking their pension funds for the bank bailouts. Many funds already lost money as a result of being invested in MBS Mortgage Backed Securities so the banks got you that way too I can easily see them taking them over here.

Ireland’s Debt Servitude

Stripped to its essentials, the €85bn package imposed on Ireland by the Eurogroup and the European Central Bank is a bail-out for improvident British, German, Dutch, and Belgian bankers and creditors.

The Irish taxpayers carry the full burden, and deplete what remains of their reserve pension fund to cover a quarter of the cost.

in full

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100008812/irelands-debt-servitude/

Hungary Follows Argentina in Pension-Fund Ultimatum, `Nightmare’ for Some

http://www.bloomberg.com/news/2010-11-25/hungary-follows-argentina-in-pension-fund-ultimatum-nightmare-for-some.html

Remember My Discussion on Pensions?

And how you were going to get screwed?

Feel free to use the search bar and type in “Pension”, then have a read.

You’re hosed America. Severely. Far worse than you think. And there’s nothing you can do about it.

I wish it wasn’t true, but it will be, because you refuse to stand up and put a stop to this crap.

France is the latest to seize pension assets. They follow Hungary and Ireland. There will be more. And eventually, it will come here - and when it does, you will get hosed.

http://market-ticker.org/akcs-www?post=173478

France seizes €36bn of pension assets

http://www.efinancialnews.com/story/2010-11-29/france-seizes-euro-36bn-of-pension-assets

Ireland to back bailout with airlines, banks, and pensions

http://www.tribune.ie/news/article/2010/nov/21/ireland-warned-it-will-have-to-stump-up-state-asse/

No he doesn’t. He is one of Dave Ramsey’s Endorsed Local Providers and his advice has helped me realize 4% gains in my 401(k) since I started with him in 2008.

Dave also stands behind the 401(k) as sacrosanct. It’s actually more harmful than good to withdrawal early, and leaving the money alone is more beneficial in the long run.

That being said, I still advocate full withdrawal if the writing is on the wall. I’m not quite there yet, but it’s coming.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.