Tag Archives: savings

401Ks and IRAs touring Atlantis

Speaking of savings and shell games.

Privatizning the Social Security Administration ought to seal things up.  Close the doors and call the law to get the vagrants off the streets.

Privatizing the Social Security Administration ought to seal things up. Close the doors and call the law to get the vagrants off the streets.

My friend Rich worked most of his life for one of the phone companies going around testing and fixing whatever the hell goes wrong with them.  Spang came nigh unto getting runned over by out-of-control cars, getting electrocuted, all the dangers of being a working man.

But he was prudent.  Constantly did the wise, advised thing every month, investing in 401K and IRAs just as wise advisors said a person ought to so’s to have some security in old age retirement.

Had himself a comfortable pile of money in there when it came retirement time, looked forward to his remaining years without financial worries or woes.

Then he noticed his money was going away without him touching it.  Spang, suddenly the value of his 401Ks and IRA shrunk, then shrunk some more, vanished into the Twilight Zone.

Hell of a bargain for him because he didn’t have to go to the trouble of spending it.  Whatever the hell happened to that money, evidently someone somewhere else who didn’t go to the trouble of saving it must have stuck in his pockets, bought a new Mercedes, snorted some really good stuff.

So now old Rich draws his Social Security pension and tries to live on it, same as so many others.  Doesn’t have to worry about what kinds of things he might buy if he had that money.

All he has to worry about now is whether the US government will keep paying him his Social Security pension, or whether they’ll turn it over to the same people who handled his 401Ks and IRAs.

Life goes on.

Old Jules

Twilight Zone banking – 1% interest on your savings! Get it while it’s hot.

The US Federal Reserve and its branches oversee these matters, while staying in the background and keeping a low profile.

The US Federal Reserve and its branches oversee these matters, while staying in the background and keeping a low profile.

Hi readers.  Thanks for coming by for a read.

An acquaintance of mine sold off his home and land elsewhere a while back, carried the note.  But the buyer payed off the whole thing unexpectedly far in advance of when it was due.

So my acquaintance suddenly found himself with almost a million bucks rolling around in his wallet wondering what to do with itself.  Checked out money market, certificates of deposit, all the usual suspects figuring to make some interest on it as savings.

And suddenly found himself in Twilight Zone.  Nobody’s paying interest on savings anymore, to speak of.  The best interest he could find was 1%.  Lucky to get that much.

So what the hell does that mean?

Heck, I’m clueless.  My whole life it’s been background culture and policy, tradition, that savings were a good thing to do, prudent, wise, encouraged by government and banks alike.  I think the worst interest I’ve ever known of in my life for savings was US Savings Bonds they hammered us into buying when I was in the military.  Those paid 3% or so, and we all believed we were being raped.

About all I can figure is that banks are making all their money these days off high interest and fees on credit card debts, so much so they don’t need savings of investors to loan out.  Don’t want to be having to share their profits in the form of interest payments with people who just save money in their institutions.

But I also think it must all go back to the smoke and mirrors of the Federal Reserve ghosthood, and who-knows-what-else involving stuff I can’t begin to imagine.

But if they’re only paying 1% interest on a million bucks, seems to me the government ought to be getting off fairly light on interest payments for the deficit loans.  The folks loaning the government to keep going ought to be able to feel rich drawing 2% increase, say, on umpty-ump trillion quadrillion buzzillion dollars.

Somewhere in all this Economics 101 circa 1970 flees to Atlantis and sinks into oblivion.  We’ve entered the Twilight Zone where no man has gone before.

Old Jules

Philosophy by Limerick – The Wall Street Banker

He wasn’t quite sated, inert.
401s left him wanting dessert.
The bailouts were tasty
But SS still wasty
His rhinestone mines couldn’t subvert.

Old Jules