I am seeing more posts getting away from excerpting.
I think excerpts encourage people to click on the link, which is only just to reward the author who wrote the piece and the site that published it.
As for your post, excellent as usual. Had not seen this particular author at American Thinker, but she’s a find!
Wait till the emperor steps in and imposes a moratorium on them or something.
Scouts Out! Cavalry Ho!
For almost two decades we as a nation have saved between 1% and -1%. Is it surprising that, when difficulties arose, that there is no other recourse?
What are they going to do now?
There used to be stories about how the govt. was going to take over all 401K's and manage them. I haven't seen one in a while and that scares me.
Am sure he is glad he said he wasn’t “going to rest until...” instead of saying “I’m not going to eat ice cream until...” or “I’m not going to play golf until...”
At least the government isn’t doing it...(yet...)
Also it’s better than taking gov’t money...
Second thoughts abound presently I bet.
1) If you take out a loan and are employed, the money comes back out of your payroll and goes back into the plan - as does the interest on the loan - since you are essentially borrowing money from yourself. Yes, it hurts your nest egg temporarily and over the long run, but it isn't fatal as long as you stay employed and the debt gets paid.
2) If you take it out as a payment, you get hit with high taxes twice - first at the time of withdrawal and secondly as income. When I did it, there was no preconditions for hardship and I did not have to get permission from my employer. I'm also below age 59.
3) When a co-worker was asked what happens if he loses his job and has a loan outstanding, he was told he would be sent a passbook and would be expected to make monthly payments as before. ABC News said you have to pay back every penny to the 401k immediately, which would be a hardship to most people who took out the money in the first place.
4) The interest rates on the loans were much better than what I could have had with a personal bank loan, which is why I took them out. You could not withdraw more than 50% of your balance and could not take out more than two loans at a time.
How’s....that....Hopey-Changey...Thing...Working...Out...for...Ya?
Every dollar pulled from a 401k shrinks the money supply by about 95¢.
We call that deflation.
If I had taken all my money out in 2007 and paid the tax and penalty on it, I would still have more than I have today.
The thing that happens during a liquidity trap is that people do unusual or desperate things to find the credit that they need.
Credit is scarce during a liquidity trap.
But selling things to obtain cash or credit creates more sellers than buyers, so prices fall.
Deflation.
My wife had lunch with a lady today who owns 3 real estate offices with her son and they were just warned by the banks that the second wave of foreclosures are coming. There were solid loans and not pie in the sky appraisals but the unemployment picture is hitting these families...
REMEMBER NOVEMBER!!! Folks, vote on election day to destroy the entire Democrat Party and....with it anti-American, POTUS Barack Hussein Obama!!! November is coming fast!!! And.....remember there is no such thing or being as a good Democrat!!!