‘Kiss your pension fund goodbye’? Economist warns government could seize 401(k)s

Economic Collapse News ^ | 25 May 2015 | Andrew Moran

[SkyPilot]

The United States government could start seizing 401(k) plans, says one economist who believes a recent Supreme Court ruling sets the stage for Washington to initiate any such plans.

Economist Martin Armstrong published a blog post Monday that took a look at the recent Tibble v. Edison case. The court concluded that employers have an obligation to protect their workers’ 401(k) plans from mutual funds that provide deplorable returns. Armstrong thinks this could give the federal government the arsenal to begin seizing private funds and take companies to court if mutual funds perform poorly. This comes as the Obama administration has attempted to battle Wall Street brokers who peddle certain retirement investments that may prove to be a conflict of interest.

Here is what Armstrong, who reportedly predicted the ’87 crash and 1990s Russian economic collapse, wrote in his article:

“This comes just in time for then the next step is government to seize private funds and prosecute employers who choose badly a fund manager. This fits perfectly just in time for the Obama administration’s next assault as they prepare a landmark change of its own by issuing rules requiring that financial advisers put the interest of customers ahead of their own. This creates a very gray area wide enough to justify public seizure of pension funds under management.”

He added: “Between the court ruling and the Obama administration’s push for stronger fiduciary rules send a strong message that government can much easier seize the pension fund management industry of course to ‘protect the consumer.'”

[Osage Orange]

You do realize this has already happened just recently...wasn't here in the U.S.A. though. I frankly think it's a possibility.

Here's something you might want to know...

https://www.youtube.com/watch?v=5cNSwc_NCok

[ought-six]

I read somewhere that there is 21 TRILLION dollars in the various personal retirement plans (401ks, traditional IRAs, Keoghs, Roths, etc.). The government is just salivating to get its grubby hands on that stash.