Saturday, October 25, 2008

Bye Bye 401K,Venezuela Style

from workforce.com

House Democrats (Communists) Contemplate Abolishing 401(k) Tax Breaks
Powerful House Democrats are eyeing proposals to overhaul the nation’s $3 trillion 401(k) system, including the elimination of most of the $80 billion in annual tax breaks that 401(k) investors receive.

House Education and Labor Committee Chairman George Miller, D-California, and Rep. Jim McDermott, D-Washington, chairman of the House Ways and Means Committee’s Subcommittee on Income Security and Family Support, are looking at redirecting those tax breaks to a new system of guaranteed retirement accounts to which all workers would be obliged to contribute.

A plan by Teresa Ghilarducci, professor of economic-policy analysis at the New School for Social Research in New York, contains elements that are being considered. She testified last week before Miller’s Education and Labor Committee on her proposal.

Under Ghilarducci’s plan, all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government but would be required to invest 5 percent of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would pay 3 percent a year, adjusted for inflation.

The current system of providing tax breaks on 401(k) contributions and earnings would be eliminated.

I want to stop the federal subsidy of 401(k)s,” Ghilarducci said in an interview. “401(k)s can continue to exist, but they won’t have the benefit of the subsidy of the tax break.”

Under the current 401(k) system, investors are charged relatively high retail fees, Ghilarducci said.

I want to spend our nation’s dollar for retirement security better. Everybody would now be covered” if the plan were adopted, Ghilarducci said.

Editorial Note: Who is Teresa Ghilarducci and who gives a sh*t what she wants?

Thursday, October 16, 2008

Dick and Dan the Plumber Corroborate Joe the Plumber


The liberal attack dogs swung full tilt against Joe the Plumber but here's more evidence. Small business owners, the verdict is in: Obama is taxing you more in order to "spread the wealth around." Click here, on the pic or the title to get the story from a Channel 5 somewhere in central NY state.

Friday, October 10, 2008

Wednesday, October 8, 2008

$SPX 783 is in Play, Ladies and Gents


Using the Fibonacci Fan study on my it is amazing how we have stopped precisely on the 78.3 retracement line drawn from the low of 2003 to the high of the Fall of 2007.

This, to me means, if we break this last fan, its down to the low of $SPX 783.

I've been keeping small and have sold a bull call spread with the SPY at NOV 86/84 and I'll probably sell another this am.

In my 401K at work I've been dribbling out of my 60% US Treasuries position taken last Spring, figuring this is the sale of the decade (my time horizon on my 401K is about 20 years.)

Look for volume to start drying up (decreasing), caused by the last of the baby boomers selling their overweighted stock positions, the last of the hedge funds to liquidate, etc. At a certain point there will only be us long-termers in 401Ks, IRAs, pension funds and Warren Buffet types who will not sell.

All in all, as a 39 year old, I really appreciate this sale which is allowing me to take advantage 2003/2004 prices in my 401K.

Wednesday, October 1, 2008

The Crisis Explained

This bailout is a scam, there is no crisis, the fat cats made bad trades and now they want the US taxpayers to bail them out.

Listen here to the first half hour of TFNN's 30 SEP 2008 Tom O'Brien show. He starts with a market cap of his usually brilliant analysis and then "gets into it" with his sidekick Ed Young from MFGlobal.

Registration to the site is free and the show is broadcast in many cities around the country (e.g. WBIX AM 1060 in Boston)

The Real Reason for the Bailout: $$ to Foreigners

Rep Brad Sherman (D-CA) spills the beans and Kudlow is stumped, it is apparent he has not read the very bill he is pounding the table to pass.



associated commentary here by an interesting fellow.
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