The Briefing Room
General Category => Economy/Business => Topic started by: corbe on July 22, 2022, 11:29:30 pm
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BlackRock Faced with Catastrophic Loss Worth 100's of Billions, Smashes Industry Records
By Abby Liebing
July 22, 2022 at 12:33pm
BlackRock Inc. is the world’s largest asset manager, controlling trillions in assets. It is one of the great, if not the greatest, financial giants of the globe.
But this year, BlackRock has set a new record by losing the largest amount of money a single firm has ever lost over a six-month span, Bloomberg reported.
Just in the first half of this year, BlackRock lost $1.7 trillion of clients’ money.
Overall, as of December 2021, BlackRock manages about $10 trillion of other people’s money. That’s more than the gross domestic product of every country in the world, except for the U.S. and China, Insider reported.
So losing $1.7 trillion is a significant blow.
To give a snapshot of just how powerful BlackRock is, how much money it controls and how its losses can affect so many, here are just some of the things that BlackRock manages, or has a hand in.
<..snip..>
https://www.westernjournal.com/blackrock-faced-catastrophic-loss-worth-100s-billions-smashes-industry-records/ (https://www.westernjournal.com/blackrock-faced-catastrophic-loss-worth-100s-billions-smashes-industry-records/)
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My give a damn's busted. I will probably cheer if they go belly up
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If they go belly-up it will make the housing financial crisis of 2008 look pale by comparison for all the same reasons, IMHO.
Didn't they start as a Pentagon Contractor in the 80's?
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My give a damn's busted. I will probably cheer if they go belly up
If they go belly up a lot of people who are receiving pensions (of which they paid into) are going to be devastated. Pensions were already in trouble and this certainly is going to throw a lot of people into real financial turmoil.
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If they go belly-up it will make the housing financial crisis of 2008 look pale by comparison for all the same reasons, IMHO.
Didn't they start as a Pentagon Contractor in the 80's?
Sure will. But it's coming either way.
And yeah, I do believe they are the same as the original Blackrock... I like my public and private enterprises very decidedly divided... Never the twain shall meet.
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If they go belly up a lot of people who are receiving pensions (of which they paid into) are going to be devastated. Pensions were already in trouble and this certainly is going to throw a lot of people into real financial turmoil.
Like I said right above, it's coming anyway. if it causes Blackrock to crater, well then, every cloud has a silver lining. :whistle:
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Bkmk
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My give a damn's busted. I will probably cheer if they go belly up
Fink's duped a lot of investors with his eco-terrorist tactics, and I'd bet 90% were unaware of his ideological objectives. A lot of those folks were just innocent bystanders. You've devolved into something asocial. Feel sorry for you.
I hope no one cheers your misfortune.
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Fink's duped a lot of investors with his eco-terrorist tactics, and I'd bet 90% were unaware of his ideological objectives. A lot of those folks were just innocent bystanders. You've devolved into something asocial. Feel sorry for you.
I hope no one cheers your misfortune.
Surely I am sorry for innocent bystanders. But that does not make me root for Blackrock. THAT would be asocial.
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Surely I am sorry for innocent bystanders. But that does not make me root for Blackrock. THAT would be asocial.
That's fair. Sadly, brokers and fin. institutions do not warn clients of what I call the intangibles of these large Fund Managers.
In a corporation, at least there is a democratic process of a relatively large board, 12-25 typically who vote for what is best for the company. Not woke causes. These large fund managers are ran by 1-5 usually like minded folks who can let the politics seep into the equation. If you are invested in 50 different companies in a particuar mutual fund, your stake in the overall direction in the company's health is much less.
Then, as you grow out of control, you then weld every "don't give a damn" investor's share for annual company vote. New board members, policies, etc. And like in the case of Fink and Blackrock they have welded that power like no one else. In fact Blackrock and a few other power players are doing more damage forcinig GND shit down our throats than Thunburg, Gore, Kerry, and PIRG all combined. All via corporate blackmail.
I wish there was a way that local brokers and analyst would and should become more knowledgeable of fund manager's intent, and share that with clients. But that is a tall order, and really no practical way to implement.
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We are repeating what has been sown. And there is going to be more of it.
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That's fair. Sadly, brokers and fin. institutions do not warn clients of what I call the intangibles of these large Fund Managers.
In a corporation, at least there is a democratic process of a relatively large board, 12-25 typically who vote for what is best for the company. Not woke causes. These large fund managers are ran by 1-5 usually like minded folks who can let the politics seep into the equation. If you are invested in 50 different companies in a particuar mutual fund, your stake in the overall direction in the company's health is much less.
Then, as you grow out of control, you then weld every "don't give a damn" investor's share for annual company vote. New board members, policies, etc. And like in the case of Fink and Blackrock they have welded that power like no one else. In fact Blackrock and a few other power players are doing more damage forcinig GND shit down our throats than Thunburg, Gore, Kerry, and PIRG all combined. All via corporate blackmail.
I wish there was a way that local brokers and analyst would and should become more knowledgeable of fund manager's intent, and share that with clients. But that is a tall order, and really no practical way to implement.
Clients that invest their money into any kind of fund should be given a 'prospectus'. That prospectus lists the companies and stocks that the fund is invested in. That is a 'disclosure' that all clients are to be given by their broker or financial advisor. However, that doesn't necessarily mean that the client is actually going to read the darn thing or do any research before they invest.
In the case of stocks, investors should do some kind of research before investing.
Pension plans are a whole other ballgame, wherein the company, who takes money out of paychecks invests the money for the employee and in the case of the state pension, again money is taken out of paychecks and the state invests in funds and employees again are at their mercy. Employees are simply trying to save money for their retirement instead of strictly relying on social security. So these are the innocents; millions who put money into company or state pension plans who are going to get royally screwed (such as myself and my husband).
In the case of social security, isn't that money invested??
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Clients that invest their money into any kind of fund should be given a 'prospectus'. That prospectus lists the companies and stocks that the fund is invested in. That is a 'disclosure' that all clients are to be given by their broker or financial advisor. However, that doesn't necessarily mean that the client is actually going to read the darn thing or do any research before they invest.
In the case of stocks, investors should do some kind of research before investing.
Pension plans are a whole other ballgame, wherein the company, who takes money out of paychecks invests the money for the employee and in the case of the state pension, again money is taken out of paychecks and the state invests in funds and employees again are at their mercy. Employees are simply trying to save money for their retirement instead of strictly relying on social security. So these are the innocents; millions who put money into company or state pension plans who are going to get royally screwed (such as myself and my husband).
In the case of social security, isn't that money invested??
Great points. As big as I am into this, my eyes often glaze over during reading Prospectus'
As you point out, the problem is the investing public is unaware, and in 75% of the time doesn't really care as long as the fund gives good consistent yields.
And honestly, I own 72 different stocks and mutual funds. There really isn't time to parse through every prospectus, so I am guilty too I guess. Except those, that I think are screwing up.
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Clients that invest their money into any kind of fund should be given a 'prospectus'. That prospectus lists the companies and stocks that the fund is invested in. That is a 'disclosure' that all clients are to be given by their broker or financial advisor. However, that doesn't necessarily mean that the client is actually going to read the darn thing or do any research before they invest.
In the case of stocks, investors should do some kind of research before investing.
Pension plans are a whole other ballgame, wherein the company, who takes money out of paychecks invests the money for the employee and in the case of the state pension, again money is taken out of paychecks and the state invests in funds and employees again are at their mercy. Employees are simply trying to save money for their retirement instead of strictly relying on social security. So these are the innocents; millions who put money into company or state pension plans who are going to get royally screwed (such as myself and my husband).
In the case of social security, isn't that money invested??
While I feel bad for people like you will suffer, :pondering: I don't believe that's the case in California and CALPERS, here it the California taxpayers that get screwed because we are on the hook to make up any losses. If I had known then what I know now I would have found a nice comfy school district or city job instead of bustin my ass with no pension.
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I haven't forgot how the GM Bondholders got the deep end of the shaft even w/obummer bailing them out.
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Fink's duped a lot of investors with his eco-terrorist tactics, and I'd bet 90% were unaware of his ideological objectives. A lot of those folks were just innocent bystanders. You've devolved into something asocial. Feel sorry for you.
I hope no one cheers your misfortune.
I would never invest a dime into Ishares or any of Blackrock's offerings. They are globalists
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In the case of social security, isn't that money invested??
Where in the world did you get that idea?
It is a 100% Ponzi scheme. If you or I ran one, we would be in jail for years.
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I would never invest a dime into Ishares or any of Blackrock's offerings. They are globalists
Yep, and the worst of the lot.
Sadly have to have to admit having one fund. Have had it nearly 25 years, and really don't want to take the capital gains hit right now.
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Yep, and the worst of the lot.
Sadly have to have to admit having one fund. Have had it nearly 25 years, and really don't want to take the capital gains hit right now.
I have had the same problem. After owning several solid companies like Disney, Morgan Stanley, and Coke for years, I decided to sell them as I could no longer stand their wokeness, regardless of their financial merits.
To me, being woke will ultimately result in subpar performance. It is just a matter of time when it happens.
I do have to say that Disney and MS have both gone under since I sold, and I suspect that Coke will sometime do the same.
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Just in the first half of this year, BlackRock lost $1.7 trillion of clients’ money.
Overall, as of December 2021, BlackRock manages about $10 trillion of other people’s money. That’s more than the gross domestic product of every country in the world, except for the U.S. and China, Insider reported.
So losing $1.7 trillion is a significant blow.
It's a significant blow to their clients. But not to BlackRock itself. Either way, they get paid. They just happen to be the biggest bookie in town.
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In the case of social security, isn't that money invested??
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Ok then....
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Ok then....
Yeah... Social security goes right into the General Fund and is spent. :shrug:
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Yeah... Social security goes right into the General Fund and is spent. :shrug:
No. It's loaned, then paid back to the fund with interest using other borrowed money to keep it nominally solvent.
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No. It's loaned, then paid back to the fund with interest using other borrowed money to keep it nominally solvent.
Right... spent.
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If they go belly up a lot of people who are receiving pensions (of which they paid into) are going to be devastated.
Good. That means this time people may actually go to prison. I'm still pissed off that all the sub-prime execs continue to live millionaire lifestyles.
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Good. That means this time people may actually go to prison. I'm still pissed off that all the sub-prime execs continue to live millionaire lifestyles.
I feel another 'too big to fail' moment coming on....
Only I don't think Uncle Nanny can pack the weight without sending us down the drain.
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No. It's loaned, then paid back to the fund with interest using other borrowed money to keep it nominally solvent.
That word 'loaned'. I don't think it means what you think it means. Here's how it works. All Social Security taxes go into the Treasury's general fund. Out of this general fund, the Treasury pays out money to all Social Security recipients, keeping a tally of all money paid out. If there is any money left over, the Treasury makes an account of that money and issues a piece of paper to the Social Security Administration recording that fact.
This continues on year after year until one day, the money paid out to Social Security recipients exceeds the money coming in. (This day has already happened). The Treasury continues to pay out money to the recipients, except now they ask the Social Security Administration to give back some of those pieces of paper.
Eventually, the day will come when the Social Security Administration no longer has any pieces of paper left. And what will that mean? Nothing. Not a damn thing. Because Social Security payments have been coming out of the general fund since Day One. That's how Ponzi schemes work. Social Security is just another tax that gets spent right away.
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I feel another 'too big to fail' moment coming on....
Only I don't think Uncle Nanny can pack the weight without sending us down the drain.
The whole 'too big to fail' moniker is complete bullshit. 2008 taught us that very big companies are perfectly capable of failing. The correct terminology should be 'too big to be allowed to fail'. The only question at this point is whether the government will stay the hell out of the way and let them fail (which they should), or whether the government will bail out the fat cats and protect their life style why the proles lose their houses, their savings, and their livelihoods which is exactly what we've done since 2009.
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The whole 'too big to fail' moniker is complete bullshit. 2008 taught us that very big companies are perfectly capable of failing. The correct terminology should be 'too big to be allowed to fail'. The only question at this point is whether the government will stay the hell out of the way and let them fail (which they should), or whether the government will bail out the fat cats and protect their life style why the proles lose their houses, their savings, and their livelihoods which is exactly what we've done since 2009.
You have to know that was sarcasm. You and I are in complete agreement on this matter. Risk was taken and the piper must be paid. It's how it works.
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You and I are in complete agreement on this matter.
Yes, we are.
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My give a damn's busted. I will probably cheer if they go belly up
Don't. It isn't their own money they are losing, but that of small investors who have money in Blackrock-managed funds. Heck, I've got some there -- public universities in Ohio don't participate in TIAA-CREF, the non-profit financial services companies Andrew Carnegie established to make sure American academicians have good pensions, and part of my IRRA account with money from my few years at Ohioo State is in some Blackrock funds.
The size of their loses is not an indication of any looming insolvency, it's just that they manage a surprisingly large proportion of the total equity in American companies and the market is way down since the start of the year thanks to the Biden administration basically screwing everything up even worse than the bipartisan "stimulus" bill passed when Trump was still in already had.
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The Black Rocks, Vanguards, and Goldman Sachs of this world can all go to hell as far as I'm concerned. I don't have a pension. I have never been employed by the enemy. And since the age of 16, I have known that I and I alone am responsible for my retirement.
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Don't. It isn't their own money they are losing, but that of small investors who have money in Blackrock-managed funds. Heck, I've got some there -- public universities in Ohio don't participate in TIAA-CREF, the non-profit financial services companies Andrew Carnegie established to make sure American academicians have good pensions, and part of my IRRA account with money from my few years at Ohioo State is in some Blackrock funds.
That much is incidental to the act. There is no way to take them out without investors taking a bath. Sorry for them, but that is the nature of the game.
The size of their loses is not an indication of any looming insolvency, it's just that they manage a surprisingly large proportion of the total equity in American companies and the market is way down since the start of the year thanks to the Biden administration basically screwing everything up even worse than the bipartisan "stimulus" bill passed when Trump was still in already had.
Well, on top of that, real estate has topped out I think, and is beginning to swirl. This may be nothing but the first indicator that it's coming... but it is coming. And left to nature, when the bottom falls out, big holders like Blackrock are in for a ride.
Suits me fine.
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@roamer_1
Have you watched the series 'Mr. Robot' with Christian Slater and Rami Malek? The too-big-to-fail company in that series was called 'E-Corp' - the 'E' stands for 'Evil'. Anyway, very interesting. The stunning part was how calm the CEO behaved after his company experienced a 100% unrecoverable data loss. Because he knew in the end that the government would give him anything he wanted.
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@roamer_1
Have you watched the series 'Mr. Robot' with Christian Slater and Rami Malek? The too-big-to-fail company in that series was called 'E-Corp' - the 'E' stands for 'Evil'. Anyway, very interesting. The stunning part was how calm the CEO behaved after his company experienced a 100% unrecoverable data loss. Because he knew in the end that the government would give him anything he wanted.
No, I have not... But this is not the first time that movie has been recommended. I am going to have to go dig it up... :beer:
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The Black Rocks, Vanguards, and Goldman Sachs of this world can all go to hell as far as I'm concerned. I don't have a pension. I have never been employed by the enemy. And since the age of 16, I have known that I and I alone am responsible for my retirement.
MEGA DITTOS.
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The Black Rocks, Vanguards, and Goldman Sachs of this world can all go to hell as far as I'm concerned. I don't have a pension. I have never been employed by the enemy. And since the age of 16, I have known that I and I alone am responsible for my retirement.
Yes we also put money aside for our retirement. Maybe you were self-employed, I don't know. I worked since I was 13 pretty much taking care of myself, I put money aside and saved, got married and we saved as much as we could with kids and we planned for retirement. Life is throwing us yet another curve ball and I feel like you are chastising us for planning for retirement the best we could. We worked our butts off and we're going to get royally screwed for I guess what you classify as working for the enemy.
Gee, @Hoodat you deserve a huge pat on the back and you can sit and laugh at me who has now basically worked for nothing.
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Life is throwing us yet another curve ball and I feel like you are chastising us for planning for retirement the best we could. We worked our butts off and we're going to get royally screwed for I guess what you classify as working for the enemy.
Gee, @Hoodat you deserve a huge pat on the back and you can sit and laugh at me who has now basically worked for nothing.
That ain't fair to @Hoodat .
I too worked my butt clean off. Made it to two companies and six figures... Then I was hit with illness and lost everything in two years.
That's the way it goes. Nobody cried for me either. The difference being the false sense of security advertised by the robber barons that have your fortune and will lose it soon enough.
Nothing is safe. Nothing is sure. If there is not risk there is not profit.
I am sorry for all the little investors - but these robber barons deserve no sympathy.
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That ain't fair to @Hoodat .
I too worked my butt clean off. Made it to two companies and six figures... Then I was hit with illness and lost everything in two years.
That's the way it goes. Nobody cried for me either. The difference being the false sense of security advertised by the robber barons that have your fortune and will lose it soon enough.
Nothing is safe. Nothing is sure. If there is not risk there is not profit.
I am sorry for all the little investors - but these robber barons deserve no sympathy.
I too am was hit with illness (several rare diseases) and couldn't work after awhile @roamer_1 and no I'm not asking anyone to cry for me, and yes, I absolutely sympathize with you. Your are right all the robber barons deserve no sympathy but I feel that @Hoodat was sneering at me and at all the little investors. Sorry, but those who think they are above others, well, that just doesn't sit well with me.
This is getting way off topic.
Blackrock is in trouble and I think it will cause a domino affect on the economy.
Gold, guns, ammo, food and water.
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BlackRock is a vampire.
These investors are a casualty of it.
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No. It's loaned, then paid back to the fund with interest using other borrowed money to keep it nominally solvent.
LOL...
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Gee, @Hoodat you deserve a huge pat on the back and you can sit and laugh at me who has now basically worked for nothing.
I'm not laughing at you, nor am I asking for a pat on the back. All of us have worked for nothing when it comes to Social Security. If we had been allowed to invest that money instead of the government taking it at the point of a gun, we would all retire as millionaires. Every single one of us.
Just to let you know, I was a self-employed blue collar guy up until my early 40s when I finally earned a college degree. Ever since I got an engineering job, I have put as much as I could into a 401(k). This is going to be the only retirement money I have. It's mine. I invested it. And I chose where to invest it. And if the market tanks, it is on me and me alone. Government won't owe me a dime, because I refuse to be dependent on them, whether it is Social Security or some government pension. It has nothing to do with you.
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Your are right all the robber barons deserve no sympathy but I feel that @Hoodat was sneering at me and at all the little investors. Sorry, but those who think they are above others, well, that just doesn't sit well with me.
You have me all wrong. I am way behind the eight-ball here. I am a little investor with a 20-year late start. I have no one to sneer at. And I despise the insiders who write their own rules to benefit themselves while paying off the politicians who will bail them out if anything goes south. Companies like Goldman Sachs who dump bad stocks by recommending them to the investors who pay them for investment advice? They are a great evil, and they deserve prison. Poor people's prison. Not that country club crap that people like Bernie Madoff and Ivan Boesky go to. But as evil as those people are, they don't come close to the people running Social Security. Those people should burn in hell for eternity.
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Just one more thing I want to say here about those who gave their money to Bernie Madoff. Every single one of them did it because they were convinced that Madoff had insider information, and that he would give a better ROI than a legitimate fiduciary financial advisor. It was their own greed that sold them down the river.
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My give a damn's busted. I will probably cheer if they go belly up
@roamer_1
Yeah,tens of thousands of people will lose all their retirement savings,businesses will go out of business,houses will be foreclosed on,but what the hell,serves them right,right?
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Surely I am sorry for innocent bystanders. But that does not make me root for Blackrock. THAT would be asocial.
@roamer_1
No,your class warfare attitude is what is asocial. Neither you or anyone else can separate
Black Rock from it's investors in a crash. If Black Rock gets hurt,everybody that invested there gets hurt,also. Even charities.
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@roamer_1
No,your class warfare attitude is what is asocial. Neither you or anyone else can separate
Black Rock from it's investors in a crash. If Black Rock gets hurt,everybody that invested there gets hurt,also. Even charities.
I'm not understanding the difference here. If I invest in Walmart, and Walmart goes out of business, I get hurt. Likewise, if I invest in Black Rock, and Black Rock goes out of business, I get hurt. Why is Black Rock any different from Walmart?
If I put money in a 401(k), I get to choose where my money goes. Why in the hell would I choose to invest in Black Rock?
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I haven't forgot how the GM Bondholders got the deep end of the shaft even w/obummer bailing them out.
@corbe
What happened then is child's play compared to what is coming. The board is completely out of touch with the wishes of the stockholders,and just don't give a damn. They lust after the short-term financial gains of doing stuff like setting up factories in China to manufacture GM automatic transmissions because they see a quick percentage gain in profits due to the lower labor costs,but seem to have given no thought at all what will happen to them once the Chinese steal their designs and then refuse to sell them transmissions at a discount. Hell,they even sent GM engineers to live in China for a couple of years to help the Chinese work all the bugs out.
Same thing with other industries,too. I know of one Smithfield meat packing plant that shut down,sold out,and moved all their production to China. Hundreds of people out of work now forever in that small town/rural area so that Smithfield could save a few bucks on labor until the Chinese get on their feet well enough to void the contracts and raise the wholesale prices.
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@roamer_1
No,your class warfare attitude is what is asocial. Neither you or anyone else can separate
Black Rock from it's investors in a crash. If Black Rock gets hurt,everybody that invested there gets hurt,also. Even charities.
@sneakypete
Like Saddam Hussein guarding his infrastructure with children. Except because of small investors, some how you can't wish these robber barons any ill.
Bullcrap. That's how these evil bastards become 'too big to fail'.
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They lust after the short-term financial gains of doing stuff like setting up factories in China to manufacture GM automatic transmissions because they see a quick percentage gain in profits due to the lower labor costs,but seem to have given no thought at all what will happen to them once the Chinese steal their designs and then refuse to sell them transmissions at a discount. Hell,they even sent GM engineers to live in China for a couple of years to help the Chinese work all the bugs out.
Same thing with other industries,too. I know of one Smithfield meat packing plant that shut down,sold out,and moved all their production to China. Hundreds of people out of work now forever in that small town/rural area so that Smithfield could save a few bucks on labor until the Chinese get on their feet well enough to void the contracts and raise the wholesale prices.
You should do some research on BlackRock then. They are one of the absolute worst.
BlackRock investments in China: Consumers' Research warning consumers, governments (https://www.foxbusiness.com/politics/blackrock-china-consumers-research-warning)
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https://twitter.com/ConsumersFirst/status/1453319387449024518
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@corbe
What happened then is child's play compared to what is coming. The board is completely out of touch with the wishes of the stockholders,and just don't give a damn. They lust after the short-term financial gains of doing stuff like setting up factories in China to manufacture GM automatic transmissions because they see a quick percentage gain in profits due to the lower labor costs,but seem to have given no thought at all what will happen to them once the Chinese steal their designs and then refuse to sell them transmissions at a discount. Hell,they even sent GM engineers to live in China for a couple of years to help the Chinese work all the bugs out.
Same thing with other industries,too. I know of one Smithfield meat packing plant that shut down,sold out,and moved all their production to China. Hundreds of people out of work now forever in that small town/rural area so that Smithfield could save a few bucks on labor until the Chinese get on their feet well enough to void the contracts and raise the wholesale prices.
IIRC, the Chinese bought Smithfield. At that point, it was their plant they shipped back. If they like it, they will duplicate it, just like with anyone from here who set up manufacturing there. With no EPA and slave labor, it's easy enough to undercut prices.
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Definition of Slavery:
When someone other than yourself has a priority claim to the fruits of your labor.
We are ALL slaves and have been since 1913.
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No. It's loaned, then paid back to the fund with interest using other borrowed money to keep it nominally solvent.
And we call that gobbly gook, worthy of Algore's infamous lockbox
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Ever since I got an engineering job, I have put as much as I could into a 401(k). This is going to be the only retirement money I have. It's mine. I invested it. And I chose where to invest it. And if the market tanks, it is on me and me alone. Government won't owe me a dime, because I refuse to be dependent on them, whether it is Social Security or some government pension. It has nothing to do with you.
The fallacy here is that it remains within a 401k.
At some point, the government will actually be in such a poor position that it will be seeking funds to prop itself up (or should I say prop up the wasteful welfare spending which keeps them in power) and eye those many trillions within IRAs AND 401ks that do not belong to it but to people like you.
Biden's WH has already made motions that there must be some effort made to obtain those funds as, in their eyes, it is really not yours but theirs as no taxes have been paid and the government has a 'claim' on them.
So look forward to the time when you will have some or all confiscated and IOUs issued to you for increased SS funds or something to the like.
Me, I recognize that to distance oneself from this takeover is to reduce the amount within my IRAs to the extent I can; hence, beginning when I retired 8 years ago I have been steadily withdrawing from them and taking the hit and paying taxes, all for the effort to minimize the amount I will have confiscated.
Due to the tax cuts by Trump, we only have a couple of years until tax rates go up, and my focus has been to maximize the amount taken out to reduce my own exposure.
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The fallacy here is that it remains within a 401k.
At some point, the government will actually be in such a poor position that it will be seeking funds to prop itself up (or should I say prop up the wasteful welfare spending which keeps them in power) and eye those many trillions within IRAs AND 401ks that do not belong to it but to people like you.
This is certainly true. But we have not reached that point yet.
And if it does happen, the value of that 401(k) will drop like Enron since no sane person will be buying another share of stock ever again.
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Due to the tax cuts by Trump, we only have a couple of years until tax rates go up, and my focus has been to maximize the amount taken out to reduce my own exposure.
I am looking to transfer it gradually from a pre-tax 401(k) to a Roth 401(k). But the timing for this is not right for my family at preset. If things go south and either I or my spouse become unemployed, at that point will I make a move. And I will be making a Roth investment at a time when stock prices are low.
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I am looking to transfer it gradually from a pre-tax 401(k) to a Roth 401(k). But the timing for this is not right for my family at preset. If things go south and either I or my spouse become unemployed, at that point will I make a move. And I will be making a Roth investment at a time when stock prices are low.
Understood.
I have also shied away from Roths as, once again, they make sense only when one depends upon the government to honor its promise that it remains tax-free.
There are demons within our government who would without qualm break that promise and have us pay taxes twice similar to what was done with Social Security decades ago.
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This is certainly true. But we have not reached that point yet.
And if it does happen, the value of that 401(k) will drop like Enron since no sane person will be buying another share of stock ever again.
Buying the stock remains a viable option outside the IRA/401k.
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Buying the stock remains a viable option outside the IRA/401k.
I agree. Even when the SHTF, there will be a bottom. I'll be watching.
But, I'll grant it won't be anything Fink is involved with.
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The fallacy here is that it remains within a 401k.
At some point, the government will actually be in such a poor position that it will be seeking funds to prop itself up (or should I say prop up the wasteful welfare spending which keeps them in power) and eye those many trillions within IRAs AND 401ks that do not belong to it but to people like you.
Biden's WH has already made motions that there must be some effort made to obtain those funds as, in their eyes, it is really not yours but theirs as no taxes have been paid and the government has a 'claim' on them.
So look forward to the time when you will have some or all confiscated and IOUs issued to you for increased SS funds or something to the like.
Me, I recognize that to distance oneself from this takeover is to reduce the amount within my IRAs to the extent I can; hence, beginning when I retired 8 years ago I have been steadily withdrawing from them and taking the hit and paying taxes, all for the effort to minimize the amount I will have confiscated.
Due to the tax cuts by Trump, we only have a couple of years until tax rates go up, and my focus has been to maximize the amount taken out to reduce my own exposure.
I know everything you say is true. But if the Feds seize IRAs and 401Ks ...not only will it be catastrophic for the economy I truly think it will be a trigger for some kind of insurrection. It's not only us oldsters that would be affected...there are many younger people trying to provide for themselves. I think it would be messy.
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I know everything you say is true. But if the Feds seize IRAs and 401Ks ...not only will it be catastrophic for the economy I truly think it will be a trigger for some kind of insurrection. It's not only us oldsters that would be affected...there are many younger people trying to provide for themselves. I think it would be messy.
This will be as always an incremental thing, like the frog in the pot of boiling water.
Think "we will only make millionaires pay" then they begin whittling it down to where everyone in the middle class has forfeited their savings.
Remember: The government wants your hard-earned money in order to pay the welfare recipients who will keep them in power.
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I know everything you say is true. But if the Feds seize IRAs and 401Ks ...not only will it be catastrophic for the economy I truly think it will be a trigger for some kind of insurrection. It's not only us oldsters that would be affected...there are many younger people trying to provide for themselves. I think it would be messy.
I have been saying this since the Obama admin floated this concept back when he first started in '09. 401k/IRA confiscation and adding it into a nation wide social security vehicle would be just what the dims ordered.
However, under the present political climate and strong wave of anti-government sentiment, I am thinking that they will take a different, though no less sinister approach. Just recently, I found of the feds are raping us on incremental charges on Medicare premiums of $1000 a month. Watch for them to also charge an incremental tax for IRA/401k distributuons They'll use thethe same terminology to justify, and call it IRMAA (Income Related Monthly Adjusted Amount).
Watch for similar actions on said 401ks/IRA's. And once they get a toe hold, watch for that additional taxation.... On top of existing tax paid.
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I have been saying this since the Obama admin floated this concept back when he first started in '09. 401k/IRA confiscation and adding it into a nation wide social security vehicle would be just what the dims ordered.
However, under the present political climate and strong wave of anti-government sentiment, I am thinking that they will take a different, though no less sinister approach. Just recently, I found of the feds are raping us on incremental charges on Medicare premiums of $1000 a month. Watch for them to also charge an incremental tax for IRA/401k distributuons They'll use thethe same terminology to justify, and call it IRMAA (Income Related Monthly Adjusted Amount).
Watch for similar actions on said 401ks/IRA's. And once they get a toe hold, watch for that additional taxation.... On top of existing tax paid.
The sad part is that it will make no difference whether it is Democrats or Republicans in power as it will still happen.
Even Reagan began the assault on us by taxing SS, and endorsed amnesty.
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That's fair. Sadly, brokers and fin. institutions do not warn clients of what I call the intangibles of these large Fund Managers.
In a corporation, at least there is a democratic process of a relatively large board, 12-25 typically who vote for what is best for the company. Not woke causes. These large fund managers are ran by 1-5 usually like minded folks who can let the politics seep into the equation. If you are invested in 50 different companies in a particuar mutual fund, your stake in the overall direction in the company's health is much less.
Then, as you grow out of control, you then weld every "don't give a damn" investor's share for annual company vote. New board members, policies, etc. And like in the case of Fink and Blackrock they have welded that power like no one else. In fact Blackrock and a few other power players are doing more damage forcinig GND shit down our throats than Thunburg, Gore, Kerry, and PIRG all combined. All via corporate blackmail.
I wish there was a way that local brokers and analyst would and should become more knowledgeable of fund manager's intent, and share that with clients. But that is a tall order, and really no practical way to implement.
Not to mention, alot of these guys aren't that bright. They don't understand economics, finance, markets, risk assessment, and couldn't trade their way out of a wet paper bag. What intelligence they seem to have is more of the cutthroat, shady and suspicious scam artist or just straight up street thug type.
You can't lose that much money and actually call yourself competent.