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View Diary: David Stockman: “get out of the markets and hide out in cash” Corruption Of Capitalism (122 comments)

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  •  It's not just inflation (14+ / 0-)

    It's that 90% of people don't have their money in "the market" they have their money in 401k's and IRA's and other confidence schemes designed to separate people from their money and keep them away. All of us who don't control our own money face a massive loss if we try to extract our money from the con artists and bankers.

    The reality is that we don't actually have any money. All we have is a quarterly statement with pretty numbers on it that can be rescinded at will by the bankers and con men. As they periodically are every time the con men and bankers want to take our money for themselves.

    As those of us who lived through the 2000's remember how most people saw zero growth in their retirement accounts for a decade while *bush ran the economy into the ground.

    •  IRAs are frequently self-managed (3+ / 0-)
      Recommended by:
      skohayes, Deep Texan, Odysseus

      ...giving holders full control over their money. Past 401k's are rolled into Keoghs for just that purpose.



      Denial is a drug.

      by Pluto on Mon Apr 01, 2013 at 01:32:47 AM PDT

      [ Parent ]

    •  I have complete control (6+ / 0-)

      over the investments in my 401K. I can change them into cash with a day's notice. I can move the money around every day of the week if I so choose.
      Most 401ks are set up the same way.
      Educate yourself about your 401k and what you can do with the money.

      “We are not a nation that says ‘don’t ask, don’t tell.’ We are a nation that says ‘out of many, we are one.’” -Barack Obama

      by skohayes on Mon Apr 01, 2013 at 04:00:56 AM PDT

      [ Parent ]

      •  Yes, but (3+ / 0-)
        Recommended by:
        corvo, PsychoSavannah, ChemBob

        if you cash them out, you pay a massive tax penalty at least twice as high as any some "investment" banker pays on their investments if they liquidate them. Unless you put them right back into another 401k or equivalent.

        My point is you DON'T have real control over your money. It's only yours to the extent that the bankers allow YOIR money to be YOURS. The game is utterly rigged. All any of us has, in the end, is a sheet of paper with numbers on it and the fantasy that we have money. Everything else is a rigged game.

        Not to mention that many of us don't know enough about investing and have actual other jobs to do, which is why we PAY financial professionals to invest for us, not gamble our money for their own entertainment.

        I love the trumped up accountants who seem to believe that everyone should not only be able to do THEIR job at least as well as they do or they are fair game to be cheated and robbed by the banksters, but also, you know, be able to do their own useless job as well. You know the economy only needs accountants, why would we need teachers, artists, writers, designers, doctors and everyone else? We should all be accountants so we don't get cheated. And why should financial experts actually do what we PAY them to do? If we can't oversee their every move, why, we deserve to be cheated and robbed, right?

        •  Self-directed IRAs. (3+ / 0-)
          Recommended by:
          YucatanMan, semiot, skohayes

          The law already allows you to completely avoid the casino of the stock market.

          Wikipedia: Self Directed IRA

          Prohibited asset types

          IRS regulations prohibit IRA investments in life insurance and in collectibles such as artwork, rugs, antiques, metals (there are exceptions for certain kinds of bullion), gems, stamps, coins (there are exceptions for certain coins minted by the U.S. Treasury), alcoholic beverages, and certain other tangible personal property.

          You can buy real estate.  You can make person-to-person loans.  You can invest in someone else's small business.
          Prohibited transactions

          IRS regulations prohibit transactions that are an improper use of the value in the account or annuity by the account owner, the account owner's beneficiary, or any other disqualified person. These rules are generally designed to prevent self-dealing. Disqualified persons include your fiduciary and members of your family, such as your spouse, ancestor, lineal descendant (e.g. children), and any spouse of a lineal descendant). In addition, other disqualified persons include:

              Service providers of the IRA (e.g., custodian, CPA, financial planner);
              An entity (such as a corporation, partnership, limited liability company, trust or estate) of which 50% or more is owned directly or indirectly or held by a fiduciary or service provider;
              An entity that is a 10% or more partner or joint venturer of with an entity that is 50% or more owned directly or indirectly or held by a fiduciary or service provider;
              Additionally, in the case of a SEP or SIMPLE IRA:
                  The Employer;
                  50% or more owner of the Employer;
                  Officers, directors, 10% or more shareholders, and highly compensated employees of the Employer;
                  An entity 50% or more owned by the Employer;
                  10% or more partner or joint venturer of the Employer.

          The following are prohibited transactions with an IRA:

              Borrowing money from it.
              Selling property to it.
              Receiving unreasonable compensation for managing it.
              Using it as security for a loan.
              Buying property for personal use (present or future) with IRA funds.

          The law already allows great freedom in what you do.

          You want to buy scrubland, and reforest it to reduce CO2 and global climate change?  Permitted.

          You want to buy houses and rent them out?  Permitted, with arms-length management.

          You want to lower interest rates on student loans?  Find the valedictorian in the next town over and write him a personal loan.

          Nobody looks in the dusty, cobwebby corners of law.  But this is all black letter law today.

          -7.75 -4.67

          "Freedom's just another word for nothing left to lose."

          There are no Christians in foxholes.

          by Odysseus on Mon Apr 01, 2013 at 07:36:29 AM PDT

          [ Parent ]

        •  I did not say (0+ / 0-)

          to cash out your 401k, that's a stupid move (and I should know, since I did do that at a former job).

          But you have other options:
          1) Don't invest in a 401K, and put the money towards a ROTH or regular IRA, where you can direct where the money is invested (there are brokerages that only deal with environmentally responsible companies, for example) yourself. There are different tax rules for each option, so be sure to look into that as well.

          2) Most 401Ks have more than one option for investing your money. If you're worried about the stock market, put the money into a money market fund or similar low risk investment. You won't see much growth, but when the market crashes, you won't lose a lot of money, either.

          3) It's YOUR money- not spending a little time doing some research is simply not that hard with a computer at your fingertips. Most companies that manage 401Ks have lots of resources for amateur investors (like you and me) that make it less complicated and easier to understand.

          And by the way, I'm not an accountant, I'm a hog farmer who hates math. If I can do it, anyone can.

          “We are not a nation that says ‘don’t ask, don’t tell.’ We are a nation that says ‘out of many, we are one.’” -Barack Obama

          by skohayes on Mon Apr 01, 2013 at 03:03:55 PM PDT

          [ Parent ]

    •  I don't think the economy has been good (0+ / 0-)

      since at least before 9/11. We were told it was good, as trillions were stolen from public coffers and the price of fuel, education, and health care increased 20% or more every year.

      I think the economy has now finally improved, but after a decade or more of struggle, a larger percentage of Americans than ever before are unable to recover.

      I'm living in America, and in America you're on your own. America's not a country. It's just a business.

      by CFAmick on Mon Apr 01, 2013 at 10:39:37 AM PDT

      [ Parent ]

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