The Federal Deposit Insurance Corp. is trying to encourage public retirement funds that control more than $2 trillion to buy all or part of failed lenders, taking a more direct role in propping up the banking system, said people briefed on the matter.
Direct investments may allow funds such as those in Oregon, New Jersey and California to cut fees for private-equity managers, and the agency to get better prices for distressed assets, the people said. They declined to be identified because talks with regulators are confidential.
With the upside-down pyramid of the Boomer generation going into retirement, many on the tail-end of the wave believe that they’ll have to self-fund their “golden years.” They are concerned that Social Security will ultimately be reveled as a Ponzi scheme once more people are living off of it than contributing to it.
Encouraging investors to throw long-saved money at failed banks whose losses may not be known – or even knowable – seems poor thrift to me.
It’s almost like they want to foster a culture of dependency.
These days, “golden years” means “you can always hock your wedding band”…
How’s that old saying go? “Desperate men do desperate things.” The socialists are running out of other peoples money. There is already another move afoot to force conversion of all pvt pensions by exchanging assets for T-Bills/Bonds, i.e.,Govt IOUs. And as far back as the Clinton Admin attempts were made to pass legislation “reaching back” and taxing the current tax-free “inside build-up” of the cash value of ALL EXISTING as well as newly issued life insurance contracts.
“It’s almost like they want to foster a culture of dependency.”
Ya think? At age 52, I have absolutely ZERO confidence that I will ever cash a Social Security check. Fiscally, it’s upside down already. You hear talk about this dark day coming over the horizon when the Social Security system will be insolvent. B.S. It already is. The trust fund was dumped into the general fund and it’s gone. With the deficits that our country is running, only a fool believes that it can be fixed. It’s a fairy tale. Just like the tooth fairy. Poor little kids in California are already finding IOUs under their pillows.
There is a solution though:
Dear Federal Government, I’m not going to pay you any more taxes. Please credit the amount of tax I should have paid you against my future Social Security benefits. Please calculate my Social Security tax credit based on the average life expectancy of a healthy American male. When we balance out, call me. Sincerely, Stephen
Watching this government deal with entitlements, both current and future is like being duct taped into the back seat with Thelma and Louise up front doing the driving.
Stephen, from your comments about SS (oh yea of little faith!) I see you, like most of America must have a firm belief in the existence of UFOs by comparison..
And lepruchans, and trolls, and supermodels preferring paunchy 50 something year old studs, and Mr. Clinton did NOT inhale, and there is ABSOLUTELY no connection between the Government taking over G.M. and Toyota’s supposed engineering problems etc. BTW, I just read this off Drudge.
Wait a minute… You’re saying supermodels preferring paunchy 50-something studs is false?
Damn it! I bought a *case* of “T&A” brand beer precisely because this is what their advertising, their spoken word to the world, said would happen.
Well, at least I’ve 24 cans of brain cell killer handy in case this health reform bill passes.
So it wasn’t money entirely wasted. I guess.
– Max
Lovely… point Oregon PERS at anything stupid and they’ll go after it like a dog on a T-bone.
Well, the FDIC has all of 28 billion (with a B) left in their account. that won’t near cover all the insured deposits. And with an estimate of 700 banks to fail in 2010, I’m sure their auditors are getting nervous. “Yeah we guarantee those deposits, but if the banks fail WE HAVE TO PAY!!” So how else to write off a chunk of debt? Get John Q Public to buy it and make it out to be a good deal. Nothing more than an update on the old snake oil salesman. Me thinks they not have any of THEIR deposits in said set to fail banks, and probably don’t have the first bond.
Buy gold on the dips – no more than 12-15% of your total portfolio. Anything around 1085 to 1100 should be a good LONG term buy.
G-man, I’ve thought long and hard about your suggestion. But there is a better one; “Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where neither moth nor rust destroys, and where thieves do not break in or steal for where your treasure is, there your heart will be also.” Which by the way puts it out of the reach of the mother of all thieves.
Bill K. Amen!
While that is a sound investment strategy for the long term, the Good Lord offers no penalties for short-term investments that include gold, silver, 7.62 NATO ammunition, perishable goods and coffee.
Seems foolish to starve to death and reach heaven early through lack of planning. I’m pretty sure He will understand the logic of your diversified investment portfolio.
– Max