Where the money is....

When Willie Sutton bank robber was asked why he robbed banks he said "Because that is where the money is". How things have changed.

The banker's Bank the Federal Reserve is now robbing savers with near zero interest rates. Why? Because that is where the money is. It is a hidden tax. No law was passed. Still you are having the your money stolen through near zero interest rates to restore bank's balance sheets. If you had $300,000 in an IRA (or 401k) earning 5% in 2007 ($18,000 a year with nearly no risk) you are lucky if you earn half that today. That is a $9,000 or more of hidden taxes.

I hope to expose these types of actions and others by the FED and government. Boomers need to be vigilant - because their savings is where the money is. I will also delve into other areas of finances of interest to Boomers.

Monday, May 16, 2011

The house is on fire - pour gasoline on it to put it out

That seems to be the thinking of politicians in Washington.  Here is the headline:  Social Security TF – “We lost $1.1 Trillion last year!”.  What this means is the Social Security trust fund is $1.1 trillion dollars more underfunded that it was 1 year ago.  They use something called NPV (Net Present Value - a finance term) to determine how many $s is needed today to meet future obligations.  And Social security is $1.1 trillion worst off that it was a year ago as boomers are retiring in larger numbers than anticipated (IMO - largely due to the economic situation).

So what do the DemoRats and RepukeCons do?  They give workers a holiday on the payroll (translated FICA/SS) taxes.  That is the gasoline they are using to put out the fire.  The number of idiots per thousand people in Washington must lead the nation.  I suppose it is a good thing that many of the members of congress got fired in November.  We will see - the new crop may be as big idiots as the old crop.

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