Austerity Coming to America: How to Reduce Your Risk Now

I can write a check to cover all of the debt in the world, which will fix all the problems. Just don't cash it.

inflation adjusted per-capita GDP is much higher now than when Clinton was in charge. We're not poor, just stupid. Unfortunately, the effects are the same....

Regardless of actions taken to resolve our country's debt situation, one thing can be assumed to take place -- the rich will become richer and the midddle-class and poor will become poorer in the years ahead.

sooo:
What do you do if you are retired. BOnd rates are in the toilet, CD rates are abismal, and stocks are risky. What else is there.
We are both 66 years old and have done some things at least correctly. We at least have no debt, When we retired we also made some mistakes, our home is paid for but we purchased a vacation home (also with no debt) but that home has probably dropped 1/3rd in value. The only positive is that we continue to use it and hope to wait out the housing market debacle (here in Az. it may take 10-15years). So, what do we do. We have 25% in several cd's at an average of 4.5% all maturing in about 21/2 years. We have another 25%k in short term bonds and treasuries, with 45% in equities and the remainder in cash value of a life insurance policy(about $30k) and some even smaller amounts in cash.We do have a broker who we trust.but am still concerned over our risk. Included in the above is 100k in an immediate annuity (invested in bonds, stocks,etc.This vehicle has not been annuitized yet and I can withdraw it at a cost of $7k Youch. However, it was set up about 21/2 years ago and has increased in value over that time by about 30%.Anyhow, I do not know where to go from here. At my age I should be more into fixed investments but I see no way to get a decent return.THe short term bonds actually have done bettter than I anticipated but I am still concerned over their risk if interest rates rise.

Who reviews the reviewer?

You and your employer pay into SS all of your working career. Then when it comes time to collect, they want to take it away from you. What is to prevent this sorry government from taking anything or everything from you? What is to prevent them from taking your 401K savings from you? What is to prevent them from taking your home from you, to turn over to illegals, whom they obviously hold in higher regard than the citizens of this country?

The government never contributed one lousy red cent to SS, so what gives them the right to take it from those who have contributed? Folks, this is criminal.....and where will their criminal activities stop?

2 middle east wars paid by middle class & started by politicians on coporate payrolls. What you think that Big Business did not reap huge profits from the wars & they are the ones not feeling the PINCH NOW? Just reported this week Goldman Sachs, during the bailout rec. the majority of funds. Strange how so many Goldman past employees have responsible jobs in Washington? Reported just last week US gvt. can't find many billions of our taxpayer's dollar given by our people, on the ground in Iraq, to rebuild their country. Thought once the oil was flowing that money would repay what we spent their, not to forget the thousands of our citizens lives lost!!!!! Since this country invested so much in this part of the world, you'de think those gvt.s would lower the cost of crude by half, since we saved their skins. What is going on in Washington, DC these days must have our founding Fathers turning in their GRAVES. FORSHAME!!!!!!

If you have been in the market for 20 years, your avg, compounded annual earnings after taxes is barely 2.3%. So you can throw out that 8% ROR. Add in real inflation in the 6% range, and you are basically breaking even. This only applies to the middle class though. if you are in the top 1%, your are gaining about 10% per year, and that is after taking into account inflation. It's good to be at the top.

this guy has a clue

we lack political prudence to take corrective measures

right now government by its sheer size is hindering recovery

america can no longer bully the world so its government is bullying its own economy for its own benefit

big government is now the problem not the solution

Yes, thanks to the out of control spending of one Barack Obama and Nancy Pelosi, et al.

Obama is trying his best to unravel the country. He is doing a pretty dang good job of destroying our economy.

Austerity is coming to America - unless you are a union member - or a government worker (fed, city or state) -
If I lose some of my social security - will union members or govt workers lose the same percentage of their pension?

NWO is coming fools- World Debt slaves- thats what all the GOYIM will be!! - listen to the videos on this page 1 and especially 2 - they are now telling you durrrrrrrr.

Reality is that most of the problems we face right now with respect to deficits and the federal, state and local level stem from the reality that progressive taxation failed miserably in this recession. We had a collapse in tax revenue from the rich and the solution the Democrats have is just to tax them even more so we can have even bigger disasters in the future and likely less tax revenue from the rich.

If we can get an agreement on SS and tie Medicare in the age requirement and progressive benefits (like through a voucher that maximizes the outlays per recipient), then we can get some of the long term trends undercontrol.

All that will be required then is a ditch our current corrupt, ineffective and recently proven faulty tax code with a simpler tax tied to consumption (i.e. GDP) that would apply to corporations as well as individuals. Then the foreign companies will no longer get HUGE tax benefits from not having to pay taxes on their goods here in the US. Revenue won't dip when we only have a minor contraction in GDP like in this supposed great recession that really was only a 2.5% contraction that was quickly overcome leading to new record levels of GDP (even inflation adjusted).

Don't you think the real problem is that past socialists like FDR and LBJ made commitments that can't be kept. Now we get the supreme Socialist as President and it is finally unraveling. He should pardon Bernie Madoff and appoint him as Treasury Secretary. He might be able to put it back in a jar for a couple of more years.

Unless the Obama Zombies wake the heck up, the U.S. is doomed. But, you know, it was predicted in the Bible. A One World Government, One World Religion. There is but ONE WAY to Salvation, and that is Jesus Christ. For God so loved the world that He gave His only begotten Son, that whosoever believes in Him should not perish but have everlasting life. John 3:16

What are we to think/do? Dos Hombres keep having these guests, who, on the surface appear rather credible. Then look at what the market is doing..................

Christ - people on Wall Street actually identified a new norm when it comes to "this time" being different than past recessions. This recovery has only ever been on paper - not practicality.

Dear God! Reading the comments around here it has become evident that America has become a nation of whiny b!+(#es.
OH the unions this! Government employees that! whaaaaa whaaaaa!

GROW A PAIR AMERICA!

Audit the Fed.

To the blogger Jim H. You say you are 66 years old. Are you "into" stretching? Because bend over and put your head between your legs and kiss your behind.

There is going to be much "darkness and gloom" financially in this society. No matter how much financial manipulation you try to maneuver. Think survivalist mode, because that is where it is going no matter how many people they put forth to say otherwise.