Boomer Financial Survival: The Endgame - We have seen the script

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.

Sunday, March 13, 2011

The Endgame - We have seen the script

You want to see the likely future outcome and what lies ahead. You have seen the script - it is Japan and the last 20 years.

"I think a long-term chart of the Nikkei says it all. There was a massive bubble in stocks and real estate that began in 1982 and climaxed in 1989. While stocks quickly corrected to flush excesses out of the system, the government elected to take the "easy" way out of the debt bubble, lowering interest rates to insane levels in the hopes that inflation would cause the debt bubble to evaporate. Or to say it another way, they stole from savers in order to bail out gamblers who lost their bets."

http://www.financialsense.com/contributors/carl-swenlin/a-bug-in-search-of-a-windshield

To understand the future you need to understand history. In Japan - by 1990 we had a situation very much like what we see today in the US. The monetary authorities here have lowered interest rates to insane levels (just like they did in Japan). Instead of flushing the crap out of the system they continue to extend and pretend. Soon we will be in Phase II - pray and delay.

It is time to demand your elected officials do the right things not the easy things. It won't be pretty, it won't be easy, but it is the right thing - let the economy flush.

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Background

I am a leading edge boomer, first of a huge wave of boomers. I believe I have done an adequate job in preparing for retirement (no debt, some savings, IRA accounts, home paid off, no auto payments). My largest recurring monthly cost is health insurance.

The one area I come up short is long term care insurance. As I suspect a large per cent of boomers do. ...

I enjoy playing the stock market and most week days will be online watching the market. I tend to crunch numbers when analyzing any situation (as you might expect from a college math major). If you are like me you are concerned about things going on with the economy, the FED, the government deficits, potential inflation and the many things that could derail your plans.