Posted on 05/27/2009 8:28:25 AM PDT by hripka
..more like a frememy.
Actually you can pull it out and pay taxes and penalties which average about 50%. Better 1/2 than none. For the record I am not advocating this.
Yep. They may be putting the brakes on us because our erected officiars can’t.
Gulp: U.S. to lose AAA debt rating?
That will mean higher interest rates and much greater debt. We can cut the blow in two ways: Print, print, print and inflate ala Weimar or raise taxes through the roof to service the debt and regain our rating.
Where does that leave investors? I suppose stocks are somewhat sheltered from inflation as you own a portion of a company (and not the dollar) but under both scenarios (inflation and taxation) the economy (and companies) take a hit. Gold and commodities work too but you don't want to put all you eggs in one basket.
So where then?
Foreign stocks and bonds?
Any particular sectors fair better than others? I would say health care, but, given the push for Obamacare and their behavior with the auto companies and banks, it seems a lot riskier than would otherwise be the case.
Is it any wonder so much investment $$$ is still on the sidelines. Seriously, what reasonable options are there?
Yep. That's my predicament.
I think we are in the calm before the storm. The big waves are headed our way.
Not good. Predictable, but not good.
Don't you wish you could print your own money? Why would China think Obama/Bernake would do this? Maybe they notice all Obama's spending 'pays for itself' except taxes on that 5%.
Thanks rabscuttle385 for ping.
My short answer would be ‘yes.’ We are entering what is looking more and more like some near-future science fiction novels in terms of how our society, government, and technology works and interacts.
Well, I guess, as an American citizen and tax payer I am, by default, printing my own money. And... I expect to go broke because I know better but, for some reason, I just can’t seem to stop! The collective mind is out of control...
We should have “came for the communists...” while we were in power. Now, they are coming for us!
Who would have thought that the day would come where China was giving the US advice is should follow and the US won’t do it?
Who knew there would be a day where our government was to the Left of theirs?
Same predicament here. I am significantly in gold, but as you, don’t want to overweight. Though I have invested in the market my whole life, now I don’t totally trust the stock market, because of so much goobermint interference. Yet I fear if I leave cash on the sidelines for too long, I will begin to get hammered by serious inflation at some point.
2009 QE? Necessary because of 2008 bank de facto nationalization. That was necessary because of intervention in rates which caused overleverage but also bank profits dependent on carry trade. That was thought to be necessary to fight the dot-com bust and 9/11. The dot-com boom was exacerbated by low rates to fight the Asian crisis, carry trade from Japan's bust-fighting measures, LTCM spillover, moral hazard causing abnormally low rates for GSE's, etc.
Can trace a lot back to Congress in the 70's through 90's. Also 1987 response to crash (market meddling and low rates including distortions in long term rates). Before that wage and price controls and leaving the gold standard. Only one simple change is needed: dont meddle in the markets, especially not in the credit markets.
Seems like the 10-year bond rate is up 58% since Jan 20.
Nice job, Obamba.
Oil is up too;
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