Be afraid. Be very afraid.

You wanted change? Be careful what you wish for…
From The Wall Street Journal:

If you have a 401(k) or equivalent retirement plan, you’ve probably been watching nervously the past few weeks as your nest egg has shrunken owing to the current turmoil in the markets.
Well, it could be worse. But don’t take heart, for what we mean is it could get worse. The market turmoil has some politicians on Capitol Hill eyeing the end of the 401(k) as we know it. Workforce Management reports on a hearing of the House Education and Labor Committee earlier this month.

From The Carolina Journal:

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.
Triggered by the financial crisis the past two months, the hearings reportedly were meant to stem losses incurred by many workers and retirees whose 401(k) and IRA balances have been shrinking rapidly.
The testimony of Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York, in hearings Oct. 7 drew the most attention and criticism. Testifying for the House Committee on Education and Labor, Ghilarducci proposed that the government eliminate tax breaks for 401(k) and similar retirement accounts, such as IRAs, and confiscate workers’ retirement plan accounts and convert them to universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration.

Read both articles and govern yourselves accordingly. Do I trust the Dems with my money?
No. End of discussion.

12 thoughts on “Be afraid. Be very afraid.”

  1. I don’t trust the Dem’s with my money or the Repub’s for that matter. The gov’t needs to keep their greedy little paws off my money.

    Interesting tho’ – the late Larry Burkett predicted 20 years ago that one day Congress would nationalize 401k and IRA accounts. Looks like they might be ready to try.

    That reminds me – I need to go buy more ammo…

  2. Jimminy Crickets, lets bring us all down to a common, miserable denominator by punishing the hardworking, responsible members of our society. The Dem’s liberal philosophy is geared primarily for the ‘chusmas’ in each society. Not sure most Americans wanted that, but that’s what their ignorance, laziness,and whining will get them – stupid shits. BTW, looks like Obama is aiming at repealing the controls on Federal funding for stem cells and will reverse President Bush’s permission to drill for oil in Utah. The immoral, irrational, immature, irresponsible, weak-kneed deluge is waiting to pounce on us….God Almighty!

  3. So here’s where the Democratic Congress is getting their advice from:
    “The school’s dedication to academic freedom and intellectual inquiry reaches back to the university’s founding in 1919 as a home for progressive thinkers and the creation of the University in Exile in 1933 for scholars persecuted in Nazi Europe. The interdisciplinary education offered by The New School for Social Research today explores and promotes global peace and justice as more than theoretical ideals.”
    From their Economics Department:
    “The Department of Economics offers a broad and critical approach to the study of economics, covering a wide range of schools of thought, including Keynesian and post-Keynesian economics; the classical political economy of Smith, Ricardo, and Marx;”
    Visit the web site for the “New School” here:
    http://www.newschool.edu/
    Can someone — anyone — tell me what the f*** is so progressive about 150 years of failed policies, achieved at the expense of 200 million+ lives?
    Hey America – you chose your own fate.

  4. Mambi, Bush never blocked federal spending on stem cell research. He blocked federal spending on EMBRYONIC stem cell research. Our “friends” on the left like dropping that word to point out what anti-science religious zealots Christians are.

  5. So help me, I’ll cash mine in and take the penalty before I turn it over to the government for “safekeeping”.

  6. I’m with you Paco and Lazaro. I’ve put too much into my 401K to let them have it. If everyone knew their money would eventually be confiscated, they wouldn’t have invested in 401ks to begin with.

  7. The people will riot if this happens. Trust me this will never get off the ground unless these idiots plan on not getting reelected in 2 years.
    There’s major constitutional issues here with such legislation as well. It would be a clear taking by the federal government and they can’t do that without paying for it. The value of 401k’s and IRAs in the US is frigging huge.

  8. Perhaps the saddest aspect of all this is that a good chunk of Americans wouldn’t bat an eye if this were to come to pass. A lot of people don’t give a crap if the government decides to “invest” their money, and some would actually prefer it.

  9. Robert, it’s a choice. If folks want to buy T-Bills and US backed bonds, they can. But the government cannot without violating the 5th amendment essentially take anyone’s IRA or 401K without due process and just compensation.
    The only thing the government can do is remove the tax deferred status of the 401K and IRA through amendments to the IRS Code. It would only apply prospectively though and this would be a complete disaster to the financial markets and businesses. The people would riot as now all that tax deferred money would become taxable now.

  10. Nurian, despite the protestations of some idiots on the blogosphere to the contrary, this has been discussed in Congress. Anything is possible with these Marxists.

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