Posted on 03/19/2013 5:42:33 PM PDT by ken5050
With all the news about banks in Cyprus grabbing a piece of every savings account, and continued intelligent speculation that Obama and congressional Democrats are salivating over the trillions that Americans hold in retirement accounts, I'm wondering if anyone else here remembers about 35 years back, when the Democrats attempted something along similar lines..
Democrats controlled Congress, and in a blatant attempt for more $$$, they introduced a bill that would MANDATE that banks withhold 20% of all interest earned on CDs. And you would also lose the ability of that portion of your funds to compound, and banks would credit interest monthly.
Here's an example. Assume back then you had $10,000 in a 6 month CD at 15%. Every month, the bank would credit your account with $125. You could either withdraw that money, with no penalty, to use for whatever reason, OR you could allow it to compound (and where else could you get 15% interest on $125 ?) At the end of the calendar year, just like now, the bank issued you a 1099 for all interest earned, and you reported it on your tax return.
Under the proposed bill, the government got their funds immediately, and the average citizen would have to wait until he filed his tax return as much as a year later, to get his money back. It was a forced, interest-free loan for the government..designed to avoid the sky-high rates on Treasuries.
What's most interesting, is that there was such a public outcry that the bill was withdrawn after a short time. I don't even think it made it out of committee. The Democrats folded compcletely.
Remember, all this happened BEFORE talk radio, the internet, cable TV, Twitter..everything that we use today to disseminate information. It was all done by snail mail, telegrams, and calls to Congressional offices..and back then telegrams and long-distance phone calls weren't exactly cheap.
I'm wondering if any other Freepers remember this. I've Googled the topic, with no success, but possibly someone who's a much better internet researcher than I might have some luck, and can post a link.
I also think that if the Democrats every tried something like this, it would be their total undoing..Remember, all those "Reagan Democrats" turned out in 1980, and no doubt this overt attempted money grab convinced more than a few to vote for the Gipper..
I lived in NYC back then, and there literally was a bank on almost every corner in midtown Manhattan..at some major intersection,there were four...and they would all post their new rates for CDs every Friday afternoon. People who had CDs coming due would literally stand outside looking at the signs in the windows, and if Chemical was at 15.2%, and Citi was at 15.3, then ALL the $$$$ went out one door, and across the street into the other bank.
Just wait until the Rats attempt to confiscate your 401 K
There is 19 Trillion, thats right Trillion currenty in 401K
plans
Wont be enought trees or lamposts to hang them all.......
Anyone with a 401k should be extra vigilant today. There is no end to the attempts of the money grubbing politicians to steal private money. That goes for all types of savings, not just 401k's.
In a way, I’m hoping the Dems actually try to pull this off, although I don’t think even they would be that stupid. It would insure their defeat in the upcoming elections, 2014 and 2016.
I doubt it would impact the election much.
Most all Dem voters pay no federal tax at all, or are mega wealthy and have robust tax avoidance schemes.
What I remember a lot better is the high mortgage interest rates because we were trying to sell our home. I also vividly remember that Rat Carter and how he and the Dems put us in that position.
The best thing about it was the landslide Gov. Reagan won the election against that turkey Carter, that was sweet.
it was proposed but I dont recall it being implimented. Bette Midler wanted to be paid in gold because she felt money was worthless. I am waiting for Hollyweird nuts starts saying they only want singapore dollars.
Right now people who have savings accounts are being ripped off by dividend rates that are near zero. There’s more than one way to skin a cat.
Jimmah..... Jimmah Cahtah...
“I remember the situation but was so poor back then that I didn’t have any savings.”
I too was a very poor college student. I also remember how news reports and banks were making it look like everyone just had 10 grand laying around doing nothing. What’s 10,000 dollars from 1979 worth today?
“Just wait until the Rats attempt to confiscate your 401 K
There is 19 Trillion, thats right Trillion currenty in 401K
plans
Wont be enought trees or lamposts to hang them all.......
They just need a bit more time to deal with this pesky gun and second amendment issue. I’ll bet they send memos out to Russian mobsters, Latin American drug cartels and Middle Eastern Oil people just before they pull the “Cypress Protocol”
I remember it well.
I also remember some of the deals for bonds that were too good to be true and couldn’t be paid and weren’t. Many of them.
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