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Keyword: savings

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  • Does It Make Sense to Decrease Your Retirement Savings to Pay Down Your Mortgage?

    10/27/2010 1:25:57 PM PDT · by Kaslin · 75 replies
    Townhall.com ^ | October 27, 2010 | Carrie Schwab Pomerantz
    Dear Carrie: I'm 60 and will probably retire between age 66 and 70. I currently have $375,000 in IRA/401(k) funds and I'm adding 8 percent of my income annually. My employer matches a portion. I still have a mortgage of over $165,000 at 4.75 percent. I'm wondering... should I stop my 401(k) contributions and apply that money in extra principal on my mortgage? If I do, I'd pay my house off in about 10 years, making life a lot easier when I retire. But I'd lose the tax advantages as well as the employer match. One idea is to contribute...
  • Fed Reserve Officials: Americans Are Saving Too Much Money, We Need To Purposely Generate Inflation

    10/08/2010 9:45:50 AM PDT · by WebFocus · 30 replies
    The Economic Collapse ^ | 10/08/2010 | Economic Collapse
    Some top Federal Reserve officials have come up with a really bizarre proposal for stimulating the U.S. economy. As unbelievable as it sounds, what they actually propose to do is to purposely raise the rate of inflation so that Americans will stop saving so much money and will start spending wildly again. The idea behind it is that if inflation rises a couple of percentage points, but consumers are only earning half a percent (or less) on their savings accounts, then there will be an incentive for consumers to spend that money as the value of it deteriorates sitting in...
  • Heh Look The Market Is Up 0.2% And You Are Starving

    09/28/2010 10:27:44 AM PDT · by jacquej · 34 replies
    The MarketTicker.org ^ | 9/28/2010 | Karl Denninger
    ........ "This is the game being played to "pump confidence" in the stock market. The Fed comes in and "POMOs" their so-called MBS "rolloffs", and the money immediately goes into speculation. This drives up equity prices, but it drives down the dollar by more (about 12% since this new "POMO" program began in June) and in turn this is immediately reflected in higher commodity prices." .......
  • Savers Told to Stop Moaning and Start Spending (Empty Your Bank Accounts!)

    09/27/2010 8:06:02 PM PDT · by Dallas59 · 11 replies
    Telegraph ^ | 9/27/2010 | Robert Winnett and Myra Butterworth
    Older households could afford to suffer because they had benefited from previous property price rises, Charles Bean, the deputy governor, suggested. They should "not expect" to live off interest, he added, admitting that low returns were part of a strategy. His remarks are likely to infuriate savers, who are among the biggest victims of the recession. About five million retired people are thought to rely on the interest earned by their nest-eggs. But almost all savings accounts now pay less than inflation. The typical savings rate has fallen from more than 2.8 per cent before the financial crisis to 0.23...
  • US Departments of Labor and Treasury Schedule Hearing on Confiscation of Private Retirement Accounts

    On August 26, the US Department of Labor issued a news release It lists the agenda for the joint hearings being held with the Department of Treasury September 14-15, 2010 on what is euphemistically called “lifetime income options for retirement plans.” The hearings are being conducted by the Labor Department’s Employee Benefits Security Administration. I don’t like speaking in tabloid-style terms, but the unstated agenda of these hearings, as I understand it, is to push for the US government to eventually nationalize (confiscate) all assets in private Individual Retirement Accounts (IRAs) and 401K plans! The US government is desperate to...
  • US Census Bureau Saves $1.6 Billion (You know that's not true)

    08/18/2010 8:22:05 PM PDT · by hometoroost · 8 replies
    This is a link to an article on the government claiming a "savings" of $1.6 BN. The savings is based on not spending all of the $14.7 BN they budgeted. Nice theory but if the 2000 Census only cost $4.5 billion then how does spending $13.1 BN constitute a savings?
  • 'Automatic' IRAs to Fill Retirement Gap

    08/12/2010 10:01:10 AM PDT · by Clairity · 64 replies
    The Street.com ^ | Aug. 12, 2010 | Joe Mont
    A bill filed by U.S. senators Jeff Bingaman (D-New Mexico) and John Kerry (D-Mass.) would automatically enroll most U.S. workers in individual retirement accounts if their employers don't sponsor a retirement plan. All automatic IRAs would offer the same three standardized investment options, each to be developed with regulations and fee guidelines issued by the Treasury and Department of Labor. The options would include a "principal preservation fund" (which would include a special Treasury Retirement Bond , the R-Bond, designed for use within an automatic IRA), a "life-cycle" option and an "alternative investment option" that can include a higher concentration...
  • So long, middle class

    08/01/2010 2:13:12 AM PDT · by Scanian · 23 replies · 1+ views
    NY Post ^ | August 1, 2010 | MICHAEL T. SNYDER
    The 25 statistics below prove that the middle class is being systematically wiped out of existence in America. The rich are getting richer and the poor are getting poorer at a staggering rate. Why? Compared to the rest of the world, American workers are extremely expensive, and the government keeps passing rules, regulations and taxes that make it even more difficult to conduct business here. What has developed is a situation where the people at the top are doing quite well, while the average family barely gets by. Entitlement programs are expanding at unprecedented rates, but it is the people...
  • How The US’s Debt Crisis Affects Savings

    07/11/2010 11:40:40 AM PDT · by Shout Bits · 3 replies
    Shout Bits Blog ^ | 07/11/2010 | Shout Bits
    While hardly a household name, Dr. Harry Markowitz developed a new way of looking at savings and investment that has fundamentally changed the financial world. In the 1950′s, Markowitz quantified the benefits of diversification in one’s savings. Prior to his work, most investors thought in terms of individual good and bad investments, but Markowitz proved that the best approach is to consider how an overall portfolio performs. Among the many assumptions in the application of Markowitz’s Modern Portfolio Theory is the notion that US Treasury Bills are risk free. With the US assuming far more liabilities than it can likely...
  • Business Week: U.S. Economy -- Rising Incomes Lead to Gains in Spending, Savings

    06/28/2010 9:59:24 AM PDT · by SeekAndFind · 16 replies
    Business Week ^ | 06/27/2010
    Incomes grew faster than spending in May, making it possible for American households to simultaneously increase savings and support the economic recovery. Gains in payrolls, longer workweeks and rising pay give Americans more confidence and the means to maintain spending in coming months. The Federal Reserve’s decision last week to keep interest rates unchanged may help households weather the fallout from the European debt crisis, unemployment hovering near a 26- year high and tight credit. “The consumer is finally starting to see some positive wage gains as the job market starts to improve,” said Omair Sharif, an economist at RBS...
  • Health Care and Saving Money

    06/15/2010 10:37:20 AM PDT · by Patriot1259 · 71+ views
    TheCypressTimes.com ^ | 06/15/2010 | Mark Roberts
    The Life Legal Defense Foundation has filed a lawsuit against the City of Birmingham and several Birmingham police officers for the outrageous civil rights violations perpetrated against nine young people who were unlawfully arrested in February last year. The team of pro-life activists spent more than 14 hours in jail for simply holding signs and handing out literature on a public sidewalk in front of a local high school. The lawsuit, filed in conjunction with local attorney Phillip Jauregui, seeks redress for the unlawful actions of Birmingham police officers in prohibiting peaceful free speech activity on the public sidewalk adjacent...
  • Siemens’ High-Speed Rail: These “Cars” Get 700 Miles-Per-Gallon

    06/11/2010 7:43:40 AM PDT · by Willie Green · 198 replies · 1,641+ views
    Investment U ^ | Friday, June 11, 2010 | David Fessler, Energy and Infrastructure Expert
    America has a “waiting problem.”Think about the time you spend waiting in traffic jams… at the doctor/dentist’s office… at restaurants… at the gas station.And how about the six months of your life spent waiting at traffic lights? Or the five years you’ll spend just waiting in lines at retail stores, the post office, DMV, etc. (Early buyers of Apple’s products likely spend far more.)And according to Robert Poole, Director of Transportation Policy at the Reason Foundation, the average air traveler now spends two to three hours waiting at the airport. Granted, much of that is due to more rigorous security...
  • Are the Feds Trying to Nationalize Your Retirement Savings?

    05/10/2010 10:45:10 PM PDT · by mark_interrupted · 21 replies · 1,459+ views
    www.powerlineblog.com ^ | John Hinderaker
    Are the Feds Trying to Nationalize Your Retirement Savings? Share Post Print May 9, 2010 Posted by John at 7:15 PM For some time, there have been rumblings that the federal government might try to solve its budgetary problems by nationalizing (i.e., stealing) the money that millions of Americans have set aside for retirement in 401(k) plans and the like. One way they might do this is to confiscate the cash on hand in exchange for a promise to make future payments in the form of an "annuity." An involuntary annuity, in that scenario. I haven't taken this speculation too...
  • Orszag: CBO lowballs savings from Obama's healthcare reform

    04/11/2010 2:38:36 PM PDT · by Nachum · 13 replies · 603+ views
    The Hill ^ | 4/11/10 | Walter Alarkon
    White House Budget Director Peter Orszag is arguing that the Congressional Budget Office (CBO) underestimates the savings from President Barack Obama's healthcare bill. CBO, the independent agency Orszag ran before he joined the Obama administration, said the legislation will reduce deficits $143 billion in its first decade and by even more -- roughly 0.25 percent to 0.5 percent of gross domestic product -- in its second decade. That would probably amount to more than $1 trillion in savings, but Orszag considers that a lowball estimate.
  • In Michigan: Latest Vote Shows Cost-Saving Plan Now Opposed by 71 in House — Including Seven GOP

    04/09/2010 9:48:15 AM PDT · by MichCapCon · 10 replies · 337+ views
    Michigan Capitol Confidential ^ | 4/9/2010 | Ken Braun
    While nearly all of the Republican lawmakers in Lansing have been generically very eager to proclaim their desire to cut the cost of state government — and for reductions in the cost of the state workforce in particular — some have been voting down the Secretary of State's effort to actually implement a specific plan to do so — when it impacts their interests...
  • The Bernanke Plan: Sacrifice Savers to Recapitalize Banks and Benefit Debtors

    04/01/2010 7:32:45 AM PDT · by arthurus · 7 replies · 801+ views
    Seeking Alpha ^ | March 31, 2010 | TraderMark
    Finally, someone is speaking up on a theme we've been promoting for a long while - one of the many "arbitrages" currently going on in the US. In this case, throwing America's savers under the bus, so that (a) any 4-year-old may run a bank successfully simply by turning on the light in the morning [Apr 20, 2009: How Banks will "Outearn" their Losses] and (b) so that debtors may benefit. What is sad to see is the potential for the desperate American saver - who has been hit by multiple Federal Reserve induced bubbles - being set up to...
  • Health care HSA changes result in higher taxes for all

    03/25/2010 6:02:30 PM PDT · by Steve495 · 13 replies · 741+ views
    Radio Vice Online ^ | March 25,2010 | Steve McGough
    HSAs - before ObamaCare – allowed individuals to put aside money to pay for qualified medical expenses – including over-the-counter (OTC) medications – on a tax free basis. Frequently, companies match or at least contribute to an employee’s HSA. (Unlike FSAs, you are able to keep the money year to year and even invest the money!) This benefit has changed.
  • The $50 Trillion Picture

    03/23/2010 9:40:59 PM PDT · by bananaman22 · 3 replies · 378+ views
    OilPrice.com ^ | 03/23/2010 | Dave Forest
    The picture below is worth a thousand words. And $50 trillion. Financial Assets held by households - Chart (Unable to post chart - please see link at end) This was just released by the Bank of Japan as part of their new "flow of funds" reporting. Basically, it outlines the composition of Japanese household assets versus counterpart households in America. The major point of note is the discrepancy in savings versus equity investments. Recently, there has been speculation that Japan is not saving as much as it used to. This is a critical issue for the Japanese economy. Japan is...
  • Obama promised $2,500 health care savings; CBO says plan is $2,300 price increase

    03/10/2010 11:57:30 AM PST · by Nachum · 30 replies · 948+ views
    Washington Examiner ^ | 3/10/10 | Mark Hemingway
    From a fact sheet on Obama's campaign website (PDF link): Obama’s plan will save a typical family up to $2,500 on premiums by bringing the health care system into the 21st century: cutting waste, improving technology, expanding coverage to all Americans, and paying for some high-cost cases. However, the CBO just produced this analysis of the senate health care bill (another PDF link) which concludes that the Senate health care bill will raise the average family's health care premiums by $2,300. Even Sen. Dick Durbin, D-Ill., is admitting that health care preminums aren't about to go down just because health...
  • 43% have less than $10k for retirement

    03/09/2010 6:22:47 AM PST · by Cheap_Hessian · 90 replies · 422+ views
    CNN Money ^ | March 9, 2010 | Chavon Sutton
    NEW YORK (CNNMoney.com) -- The percentage of American workers with virtually no retirement savings grew for the third straight year, according to a survey released Tuesday. The percentage of workers who said they have less than $10,000 in savings grew to 43% in 2010, from 39% in 2009, according to the Employee Benefit Research Institute's annual Retirement Confidence Survey. That excludes the value of primary homes and defined-benefit pension plans. Workers who said they had less than $1,000 jumped to 27%, from 20% in 2009. Confidence in ability to save enough for a comfortable retirement hovered at 16% of respondents,...
  • Is the Obama Regime About to Confiscate Your Savings?

    02/26/2010 1:09:19 AM PST · by Lexluthor69 · 63 replies · 3,033+ views
    The Silent Majority ^ | 02-26-10 | J.D. Longstreet
    There is no question but that The Obama Regime has plans for your savings. Obama’s Treasury Department and even the Labor Department are already investigating "the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams." Ok, let me see if I can break it down for you. What Obama is planning to do is: Take you savings, the money you have squirreled away for your retirement in 401-K’s and IRA’s, and hand you an IOU with which they will promise to pay you a small annuity each month of your retirement.
  • Class Warfare's Next Target: 401(k) Savings

    02/17/2010 5:40:59 PM PST · by Kaslin · 173 replies · 4,781+ views
    Investors.com ^ | February 17, 2010 | NEWT GINGRICH AND PETER FERRARA
    You did the responsible thing. You saved in your IRA or 401(k) to support your retirement, when you could have spent that money on another vacation, or an upscale car, or fancier clothes and jewelry. But now Washington is developing plans for your retirement savings. BusinessWeek reports that the Treasury and Labor departments are asking for public comment on "the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams." In plain English, the idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit...
  • Blame game over giddy China savings takes a twist

    02/15/2010 10:39:14 AM PST · by Cheap_Hessian · 8 replies · 382+ views
    Reuters ^ | February 15, 2010 | Alan Wheatley
    BEIJING (Reuters) - Greece's big budget deficit has plunged the euro zone into crisis, while rating agencies wonder whether Washington's fiscal profligacy could one day cost the United States its AAA rating. China has a different problem: its government is under attack for conservative spending policies that, critics say, are damaging long-term productivity prospects and contributing to the economic imbalances underlying the global financial crisis. The International Monetary Fund and World Bank have long called for China to ramp up social spending so its citizens have less need to save for a rainy day and can consume more. Still, recent...
  • One city just says no to more spending [Cut the lights, fire the cops, let the grass go brown]

    02/04/2010 6:53:02 PM PST · by canuck_conservative · 36 replies · 1,292+ views
    National Post [Canada] ^ | Thursday, February 4, 2010 | Kelly McParland
    Colorado Springs, second biggest city in the state, has decided that enough is enough. Confronted by a $38 million budget shortfall, and opposed to a proposal to triple property taxes to make up the gap, residents are instead bracing for spending cuts that make "draconian" sound tame. According to the Denver Post: More than a third of the streetlights in Colorado Springs will go dark Monday. The police helicopters are for sale on the Internet. The city is dumping firefighting jobs, a vice team, burglary investigators, beat cops — dozens of police and fire positions will go unfilled. The parks...
  • Suspending Money Market Redemptions Is Now Legal

    01/27/2010 2:23:13 PM PST · by thought · 6 replies · 531+ views
    Zero Hedge ^ | 1/27/10 | Tyler Durden
    ...in a nearly unanimous vote, Money Market Funds now have the ability to suspend redemptions, courtesy of the SEC's just passed 4-1 vote. This explains the negative rate on bills: at this point, should there be another meltdown, money market investors will not, repeat not, be able to withdraw their money purely on the whim of Mary Schapiro. As the SEC noted: "We understand that suspending redemptions may impose hardships on investors who rely on their ability to redeem shares." Too bad investors' hardships considerations ended up being completely irrelevant.
  • Most Americans Believe Wealth Beyond Their Reach

    01/13/2010 7:41:01 AM PST · by BobMcCartyWrites · 18 replies · 767+ views
    Bob McCarty Writes ^ | 1-13-10 | Bob McCarty
    How's all of that "hope and change" working out for you? Not too well, according to the just-released results of a new nationwide poll conducted by Princeton Survey Research Associates International and released by Bankrate Inc. today. The poll results show that the majority of Americans think wealth is beyond their reach and that it won't be easier to get rich any time soon.
  • Banks... Cash... Gold... What to save? (vanity)

    12/30/2009 7:54:50 AM PST · by Sopater · 29 replies · 1,164+ views
    December 30, 2009 | Sopater
    Don't trust the banks... Don't trust the economy and the value of the US Dollar... Don't trust the gold market... What the hell should I save or bury in my yard in order to protect my investments? Sheesh.
  • The Assault on Saving

    10/27/2009 3:55:20 PM PDT · by ThanhPhero · 3 replies · 322+ views
    jim.com ^ | 1979 | Henry Hazlitt
    From time immemorial proverbial wisdom has taught the virtues of saving, and warned against the consequences of prodigality and waste. This proverbial wisdom has reflected the common ethical as well as the merely prudential judgments of mankind. But there have always been squanderers, and there have apparently always been theorists to rationalize their squandering. The classical economists, refuting the fallacies of their own day, showed that the saving policy that was in the best interests of the individual was also in the best interests of the nation. They showed that the rational saver, in making provision for his future, was...
  • Here's your 'demonstration project,' Mr. President -- it's called Mississippi (tort reform)

    09/22/2009 10:29:59 AM PDT · by Erik Latranyi · 22 replies · 869+ views
    Washington Examiner ^ | 21 September 2009 | David Freddoso
    Since passing tort reform in 2004, Mississippi has seen the number of medical malpractice claims plummet by 91 percent from its peak. The state's largest medical liability insurer dropped its premiums by 42 percent, and has offered an additional 20 percent rebate each year since tort reform went into effect. That is the story that Mississippi's Republican, governor, Haley Barbour, offered on Friday, speaking at the Heritage Foundation. He also made an observation about President Obama's decision to offer only token "demonstration projects" on lawsuit abuse rather than address it meaningfully in his health care reform proposal.
  • Galloping Consumption: China's Savings Glut Part I

    08/26/2009 12:49:33 PM PDT · by h20skier66 · 298+ views
    Commodity News Center ^ | 8/26/09 | Adrian Ash
    "They rush about in disorder, anxious slaves of the three M's - the moment, the mode, and the mob. They see too well their want of dignity and fitness, and need a false elegance to hide their galloping consumption..." - Friedrich Nietzsche, Thoughts Out of Season II: The Use & Abuse of History (1874) NOW THE banking crisis is over - "Bernanke stays put, home prices up," as Fox News reports - the career academics who failed to spot and prevent it can get back to fretting about the most macro of tasks: How to rebalance the global economy? The...
  • (Vanity) Remember a vanity post a few months ago regarding a Steny Hoyer memo & confiscation?

    08/24/2009 2:05:57 AM PDT · by Daisyjane69 · 28 replies · 1,411+ views
    unknown | freeper
    I never posted a vanity before. Mods, please straighten out my post! I seem to remember a post by a freeper of an internal memo between Steny Hoyer to Boehner involving either potential confiscation of personal savings accounts or IRAs, 401ks, etc. I'm thinking this was in the first part of summer? Am I nuts?
  • Thrifty public is just not buying

    08/14/2009 10:55:39 AM PDT · by Notary Sojac · 35 replies · 1,387+ views
    SignOnSanDiego.com ^ | August 14, 2009 | Stephanie Rosenbloom and Jack Healy
    There is just one problem with upbeat predictions that the recession is ending: Americans are still refusing to spend money. Retail spending is still far below that of a year ago in virtually every category, as figures reported yesterday showed. Major clothing chains including Macy's, Nordstrom, Liz Claiborne and Kohl's posted earnings declines this week. Even Walmart Stores, the nation's largest retailer and one of the hardiest survivors of this recession, reported lower sales yesterday. Taken together, the reports made clear that consumers were likely to continue hoarding their dollars into the usually robust back-to-school shopping season, a crucial time...
  • Getting debt under control

    08/10/2009 3:44:25 PM PDT · by FromLori · 10 replies · 455+ views
    Market Watch ^ | 8/10/09
    <p>Even as analysts debate whether the stock market's five-month rally is nearing its end, it's clear that consumers are more interested in paying down their own debts than they in betting on the market.</p> <p>June marked the fifth consecutive month in which consumers paid down credit cards and shaved other debt, according to the Federal Reserve. In a depressing economy, reducing debt is no surprise, but the Fed's big news was that the amount Americans put into debt reduction was twice as much as economists expected.</p>
  • Will the Democrats' Massive Borrowing and Spending Binge Kill the U.S. Economy?

    07/15/2009 4:49:39 AM PDT · by arthurus · 17 replies · 1,238+ views
    Seeking Alpha ^ | July 13, 2009 | Geard Jackson
    Any reasonably intelligent person understands that if the demand for a product increases then (all things being equal, as the economist would say) its price will rise. The same holds in the case of borrowing, except for congressional Democrats. These people seem to think that economics laws are a vicious Republican plot. Poll figures are now showing that the American public is growing alarmed by the Democrats' utterly reckless fiscal policy. Unfortunately, few people understand just how grave the danger really is
  • Boomers in Trouble: The Unheralded Economic Mega-Trend

    07/15/2009 4:31:32 AM PDT · by arthurus · 56 replies · 1,803+ views
    Seeking Alpha ^ | July 14, 2009 | Graham Summers
    Thus far, analysis the financial collapse has been framed almost entirely in terms of money. All the research I’ve seen has delved into lending standards, securitization, inflation, interest rates, housing and the like. Yet underneath this veneer lies one larger, mega-trend that has driven all of these themes to a greater or lesser degree. It created one of the largest stock bull markets we’ve ever seen from 1982-2001. It helped drive the Bubbles in Tech stocks AND Housing. And now it will guide the coming collapse in stocks and consumer spending. That trend is AGE: specifically the Boomer generation and...
  • Savings Bounce May Be Upside To Downturn

    07/07/2009 6:50:21 PM PDT · by Kaslin · 19 replies · 729+ views
    IBD Editorials ^ | July 7, 2009 | J.T. YOUNG
    There may be a silver lining in the black cloud hanging over our economy: America's abysmal personal savings rate has taken a turn for the better. Building on a steady increase in the personal savings rate — 2008's 1.8% increase, a 4.2% increase in 2009's first quarter and a 5.6% rise in April — the Commerce Department has reported that the U.S. personal savings rate climbed 6.9% in May. While still early, this could signal a dramatic return to a more normal personal savings rate. It could also have profound repercussions at home and abroad as both economies recalibrate away...
  • Woman Mistakenly Junks $1m Mattress

    06/10/2009 5:34:44 AM PDT · by edpc · 18 replies · 1,205+ views
    Jerusalem Post ^ | 10 June 2009 | JPost
    An Israeli woman mistakenly threw out a mattress with $1 million inside, setting off a frantic search through tons of garbage at a number of landfill sites. The woman told Army Radio that she bought her elderly mother a new mattress as a surprise on Monday and threw out the old one, only to discover that her mother had hidden her life savings inside. She was identified only as Anat, a resident of Tel Aviv.
  • What Have We Learned from the Economic Collapse?

    03/19/2009 6:59:22 AM PDT · by arthurus · 8 replies · 480+ views
    Seeking Alpha ^ | March 19, 2009 | Sean Hannon
    ... By 2007, only one state had a prevalence of obesity below 20%, 30 states were greater than 25%, and three states had a prevalence of obesity equal to or greater than 30%. By spending more than we had and indulging in unhealthy lifestyles, Americans, both individuals and corporations, traveled down a road of excess with the false promise of perpetual prosperity. ...
  • Credit Card Cancer('culture of credit vs savings for a rainy day')

    03/13/2009 6:36:19 PM PDT · by sickoflibs · 29 replies · 1,697+ views
    Euro Pacific Capital ^ | March 13, 2009 | Peter Schiff
    This week, with his pronouncement that “credit is the lifeblood of a healthy economy,” President Obama reiterated what has been one of his most common themes in diagnosing our economic problem. The president has relied on this bedrock belief to propose policies that place the restoration of credit as the highest priority. However, despite his seemingly earnest intentions, the president and his economic advisors have misdiagnosed the ailment. Savings, not credit, is the lifeblood of a healthy economy. When not used properly credit can be like a cancer that sickens an otherwise healthy economy. What everyone seems to have forgotten...
  • Your 401k could take ten years to recover, top economist says

    03/05/2009 12:03:14 PM PST · by rabscuttle385 · 58 replies · 1,519+ views
    The Christian Science Monitor ^ | 2009-03-05 | Dave Cook
    There are no fast solutions – either for the US economy or for individuals trying to rebuild retirement funds clobbered by the falling stock market. That was the message from Mark Zandi, one of the nation’s top economists. Mr. Zandi is co-founder and chief economist of Economy.Com, a firm that provides various kinds of research to individual, business, and corporate clients. He was the guest at a Monitor-sponsored breakfast for reporters on Thursday. How long will it take the stock market to recover? “It could be a decade,” Zandi said. “If I were an individual thinking about the size of...
  • Cut Taxes for the Right Reasons

    02/20/2009 7:27:29 AM PST · by djsherin · 31 replies · 588+ views
    Mises Institute ^ | February 16, 2009 | Robert P. Murphy
    In their zeal to oppose the lunacy of the so-called "stimulus" plan, many radio talk show hosts and other pundits have fallen into the Keynesian trap. Rather than the politicians spending nearly a trillion dollars, they argue, it would provide much more stimulus if the government gave massive tax cuts. This would "put money back in the pockets of average Americans" and they would go to the mall and "get that money into circulation and boost the economy." Although the instincts behind such arguments are sound, they often betray an underlying Keynesian mindset. By justifying tax cuts on the grounds...
  • SOS - save our savers, unfairly punished[UK]

    01/26/2009 12:01:46 PM PST · by BGHater · 3 replies · 245+ views
    Times Online ^ | 26 Jan 2009 | William Rees-Mogg
    The Government should remember it was debt, rather than sensible saving of money, that led to the banking crisis Lord Griffiths was an important economic adviser during the Thatcher years. He was a director of the Bank of England from 1984 to 1986 and head of the Prime Minister's Policy Unit from 1985 to 1990. In 2005 he was chairman of the Griffiths Report on personal debt in Britain, which gave a clear warning of the excessive debt that eventually led to the current global crisis. In an interview with the BBC's World This Weekend, Lord Griffiths said that “debt...
  • Why Singapore Retires Securely

    01/15/2009 5:23:10 PM PST · by goodnesswins · 24 replies · 718+ views
    Cascade Policy Institute ^ | 1/13/09 | Sreya Sarkar
    Summary Singapore’s Central Provident Fund is based on individual savings and building assets, unlike the American Social Security system. Singapore’s national philosophy, “nothing should be free,” has encouraged free-market strategies and individual responsibility, a good model for American social policy. Commentary In the U.S., government-run entitlement programs like Social Security, Medicare and Unemployment Insurance are staggering under an ever-increasing price tag, while a parallel and struggling asset-building movement carefully tiptoes around the wide spread of government welfare programs, all the while repeating that asset-building for low-income Americans is only supplementary. Like the U.S., Singapore also has a compulsory social welfare...
  • Big Slide in 401(k)s Spurs Calls for Change

    01/08/2009 3:40:48 AM PST · by abb · 113 replies · 3,343+ views
    The Wall Street Journal ^ | January 8, 2009 | Eleanor Laise
    The stock-market rout has ignited a crisis of confidence for millions of Americans who manage their own retirement savings through 401(k) plans. After watching her account drop 44% last year, Kristine Gardner, a 35-year-old information-technology project manager in Longview, Wash., feels no sense of security. "There's just no guarantee that when you're ready to retire you're going to have the money," she says. "You either put it in a money market which pays 1%, which isn't enough to retire, or you expose yourself to huge market risk and you can lose half your retirement in one year." Many retirement experts...
  • Savers facing accounts with no interest[UK]

    01/03/2009 10:19:52 AM PST · by BGHater · 11 replies · 436+ views
    Telegraph ^ | 03 Jan 2009 | Edmund Conway and Myra Butterworth
    Millions of savers are braced for zero per cent accounts within days as the Bank of England is poised to cut interest rates to the lowest level in its 315-year history. Experts have warned the return on savings could plumb new depths with the Bank expected to take unprecedented steps to regain control over the economy. They widely believe the Bank will reduce borrowing costs to below their 2 per cent level - and possibly all the way down to 1 per cent - in its first meeting of the year next week. More than 7 million people have saving...
  • "Democrat" 401K Confiscation Proposal is "Republican" Mandatory Savings Plan

    11/15/2008 2:47:36 PM PST · by EagleUSA · 41 replies · 3,034+ views
    John Birch Society ^ | 11/15/2008 | Eagle USA
    Monday, 10 November 2008 06:32 "Democrats in the U.S. House have been conducting hearings on proposals to confiscate workers’ personal retirement accounts — including 401(k)s and IRAs — and convert them to accounts managed by the Social Security Administration." That was the lead sentence in an article entitled, "Dems Target Private Retirement Accounts," published in the Carolina Journal on November 4th. With those alarming openers, the article has gone viral over the last week — at least among those who advocate less government interference in their economic lives. Unfortunately, the Carolina Journal is only telling half of the story —...
  • The rise and fall of the 401(k) (government does it best)

    11/12/2008 5:21:11 AM PST · by Libloather · 12 replies · 915+ views
    Madison.com ^ | 11/12/08 | Mike Ivey
    The rise and fall of the 401(k)Mike Ivey — 11/12/2008 5:36 am **SNIP** The State of Wisconsin Investment Board, for example, manages the retirement funds of more than 550,000 current and former government workers in the state. It is widely respected as one of the best public pension funds in the nation. In Wisconsin, monthly pension payouts to retirees are calculated based on five years of market returns, which helps to smooth out the inevitable ups and downs of Wall Street. Even with the unprecedented stock market decline of 2008, participants in the Wisconsin retirement system are likely only looking...
  • Live on Less and Love It

    11/10/2008 9:52:05 PM PST · by TenthAmendmentChampion · 96 replies · 1,581+ views
    Mother Earth News ^ | October 2007 | Craig Idlebrook
    On paper, my wife and I are poor. How poor? In 2005 we made $4,303.84 combined; in 2004 we made half that. We’re in such a low tax bracket that I have trouble convincing the government of our tax return’s accuracy; they simply can’t believe Americans can live on that kind of money. Yet in many ways, we’re better off than a Wall Street banker: We’ve saved enough money to buy land without a mortgage, we have no credit cards or monthly bills, I work 20 flexible hours a week from home, and my daughter has two stay-at-home parents. Simply...
  • 401(k) early casualty of downturn (recession would jeopardize employers match - 3% is COOL!)

    11/09/2008 3:41:29 PM PST · by Libloather · 9 replies · 174+ views
    Journal Gazette ^ | 11/09/08 | DAVID PITT
    401(k) early casualty of downturnRecession would jeopardize match made by employers DAVID PITT Associated Press Published: November 9, 2008 6:00 a.m. DES MOINES, Iowa – Retirement accounts already battered by a steep market decline might get hit again as several companies suspend or reduce their 401(k) match to save cash. **SNIP** Matching contributions average about 11 percent of a company’s profits, according to a recent survey of more than 1,000 companies by the Profit Sharing/401k Council of America. **SNIP** “This is a recession-type of response. These employers are really up against it and they have to decide to cut somewhere...
  • Operation Thrift

    11/09/2008 12:32:02 PM PST · by nomad · 100 replies · 1,013+ views
    freeper threads | 11/09/08 | nomad
    As the implications of this election have sunk in and the future has, in so many ways, become so uncertain,many have suggested ways to fight back. One, an initial reaction to the confiscatory tax policies of the new regime, was to scale back where possible.Rush Limbaugh even mentioned that he was selling a long held and cherished condo in New York in response to their impending tax hikes. But there has been no organized approach to this "tightening of our conservative belts". I propose a new freep, call it "Operation Thrift".Operation Thrift will have several goals, first and foremost is...