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Title: 'Automatic IRA' and Government Retirment Accounts - A bad idea? Post by: WhiskeyGirl on June 02, 2009, 08:18:47 AM Is this a hint of the new PONZI scheme to replace Social Security?
Quote LIESMAN: I'm sorry, just one more question, (UNINTEL). 'Cause you reminded me of one more. You talk about the need for the United States to save more. Unclear to me whether or not there are policies in (UNINTEL) now to do that. Is this a matter of government policy of increased savings? GEITHNER: Part of it is just the necessary change in behavior by private individuals. You know, we had decades-- where private savings rates were in the range of six to eight percent. That was the normal. We had-- a few decades where private (UNINTEL) came down quite significantly. We've already now come back. They're now in the range of four to five percent. It's possible to move higher still. But-- but part of that is just-- just a basic change of behavior and expectations that I think this crisis will help reinforce. The President has put in his budget, and he said in the campaign some important proposals to help through, like, for example, automatic IRA enrollment, things like that. That might help reinforce that trend. But the most important thing we're gonna have to do, again, once we have recovery in place, is to bring our fiscal position back down to a sustainable position. Not just to address our medium term fiscal challenges, but those long term fiscal deficits. They're so driven by this unsustainable rise in (UNINTEL) health care costs. http://www.businessinsider.com/geithner-china-will-keep-funding-us-and-were-not-monetizing-the-debt-2009-6 (http://www.businessinsider.com/geithner-china-will-keep-funding-us-and-were-not-monetizing-the-debt-2009-6) The Federal government has hosed up Social Security and Medicare and not fixed it. The Federal government has failed to keep our financial system safe for investors - all those little people with retirement savings, IRAs, 401ks, etc. Now, this same government is planning an 'automatic IRA enrollment'? Who's gonna manage the money? Seems like the automatic IRA will be another PONZI scheme where some will take out far more than they ever contribute. In Mexico, iirc, the Social Security System equals "contributions + interest". You don't get more than you put in. iirc, many put in nothing, and expect to receive nothing. An automatic IRA enrollment makes no sense if the government mismanages the money, the fiancial system, and the economy. Where was Barney Frank when Congress wanted to reform Fannie/Freddie during this past decade? Was he busy promoting the idea that they were safe? Title: Re: 'Automatic IRA' and Government Retirment Accounts - A bad idea? Post by: WhiskeyGirl on June 02, 2009, 04:50:02 PM More details -
Quote In the section dealing with the automatic IRA proposal, Mr. Obama's budget seeks as much as $1 billion to establish a federal organization to oversee the proposed plan. The OMB's Mr. Gavin said the agency could be established as a stand-alone entity, or as part of an existing government agency. Details will be hashed out in the coming months. The automatic-IRA agency would carry a $200 million startup price tag in 2010 and up to $1 billion in federal support over time, according to details disclosed in the budget. Mr. Gavin said, “We're trying to make sure that we anticipate all of the program's potential needs.” The administration “has clearly placed a high premium on establishing the auto-IRA program,” said David John, a senior research fellow at The Heritage Foundation in Washington and one of the co-creators of the original auto-IRA proposal. http://www.pionline.com/article/20090518/PRINTSUB/305189983 (http://www.pionline.com/article/20090518/PRINTSUB/305189983) Another tax? Another Ponzi scheme? Will the money ever be there? Or, looted by future administrations? Squandered by bad housing investments? (like Fannie/Freddie) |