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The Oligarch Recovery: 30 Million Americans Have Tapped Retirement Savings Early In Last Year
Submitted by Mike Krieger via Liberty Blitzkrieg blog,
The ongoing oligarch theft labeled an “economic recovery” by pundits, politicians and mainstream media alike, is one of the largest frauds I’ve witnessed in my life. The reality of the situation is finally starting to hit home, and the proof is now undeniable.
Earlier this year, I published a powerful post titled, Use of Alternative Financial Services, Such as Payday Loans, Continues to Increase Despite the “Recovery,” which highlighted how a growing number of Americans have been taking out unconventional loans, not simply to overcome an emergency, but for everyday expenses. Here’s an excerpt:
Families’ savings not where they should be: That’s one part of the problem. But Mills sees something else in the recovery that’s more disturbing. The number of households tapping alternative financial services are on the rise, meaning that Americans are turning to non-bank lenders for credit: payday loans, refund-anticipation loans, pawnshops, and rent-to-own services.
According to the Urban Institute report, the number of households that used alternative credit products increased 7 percent between 2011 and 2013. And the kind of household seeking alternative financing is changing, too.
It’s not the case that every one of these middle- and upper-class households turned to pawnshops and payday lenders because they got whomped by an unexpected bill from a mechanic or a dentist. “People who are in these [non-bank] situations are not using these forms of credit to simply overcome an emergency, but are using them for basic living experiences,” Mills says.
Of course, it’s not just “alternative financial services.” Increasingly desperate American citizens are also tapping whatever retirement savings they may have, including taking the 10% tax penalty for the privilege of doing so. In fact, 30 million Americans have done just that in the past year alone, in the midst of what is supposed to be a “recovery.”
From Time:
With the effects of the financial crisis still lingering, 30 million Americans in the last 12 months tapped retirement savings to pay for an unexpected expense, new research shows. This undercuts financial security and underscores the need for every household to maintain an emergency fund.
Boomers were most likely to take a premature withdrawal as well as incur a tax penalty, according to a survey from Bankrate.com. Some 26% of those ages 50-64 say their financial situation has deteriorated, and 17% used their 401(k) plan and other retirement savings to pay for an emergency expense.
Two-thirds of Americans agree that the effects of the financial crisis are still being felt in the way they live, work, save and spend, according to a report from Allianz Life Insurance Co. One in five can be called a post-crash skeptic—a person that experienced at least six different kinds of financial setback during the recession, like a job loss or loss of home value, and feel their financial future is in peril.
So now we know what has kept meager spending afloat during this pitiful “recovery.” A combination of “alternative loans” and a bleeding of retirement accounts. The transformation of the public into a horde of broke debt serfs is almost complete.
Don’t forget to send your thank you card to you know who:
* * *
For related articles, see:
The Oligarch Recovery – Low Income Americans Can’t Afford to Live in Any Metro Area
The Oligarch Recovery – Renting in America is Most Expensive Ever
Another Tale from the Oligarch Recovery – How a $1,500 Sofa Costs $4,150 When You’re Poor
Census Data Proves It – There Was No Economic Recovery Unless You Were Already Rich
»
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Well, how else were they going to get an iPhone 6?
Tolerable, until it isn't.
My 83 year old dad has a shitpile of IBM, I told him 6 months ago to sell it all. He scoffed at me when I told him it would lose over half it's value. He watches the MSM for his investment advice. Since I warned him, Big Blue is down over $40 a share. He said everyone on TV says not to sell, then yelled at me 'are you smarter than everyone on TV"? I just laughed, and said no, they are all lying to you.
To be fair, he bought most of it in the 70's and has been giving it to his grandkids..... I sold everything he gave to my kids 5 months ago
Thats a shame -
similiar situation with my 93 year old mother - her Father had given her Citibank stock in 1941 - endless splits and dividends she rolled up for 75 years - year in year out - into a major position - not because of pundits - but because her Father told her not to sell - she was right until she was wrong - how could she know the Criminals & Fraudsters would blow it up and prove her wrong at the end of her life
and you keep dancing until the music stops.... said the man named Prince -
I'm taking out half of what I have in currently. I retired last year at 49 but look at that money as Mad Money.
You can always roll that money over into an IRA and invest it pretty much as you see fit. And you won't have to pay a shitload of taxes to do it...
I've pretty much drained my bank accounts in the last two months. I paid off my mortgage 106k, bought a nice little farmette with an 800 sf commercial building (60K) in SE WV, and added about 150 lbs of shiny to the pile. I got plenty of lead, brass, and food, and a good network of folks in 2 states.
I want my $$$ as far away from financial institutions as possible
Tongue Span - Good man. Some of us will have an economy to rebuild. Also, digging in the soil isnt just a hedge. Its therapeutic. I am jealous of your new planting land but not envious.
As for the article, not bad but the model needs change. The wizard behind the curtain is an operator not a system designer. We can all make money and evolve without exacerbating the natural booms and bust cycle for the benefit of the few where 2 generations make out but the third is destroyed. That is preying on the nature of evolution itself.
As an aside, most rich already won the vagina lottery. Having a central bank model that makes the very rich hyper rich during the worst of times in a bust is really, really evil.
Our absurdly high costs for healthcare will probably take care of the more well off ones too. Buying expensive drugs and treatments that will eat up what money you have left and probably not even work anyway. Can't have those financially independent old people leaving wealth behind for their children, that won't do. If it's not confiscated or 'disappeared' in a market crash, our fascist medical system will eat up the rest.
In order to bring about what the government has in mind for us, the middle class must be destroyed. Either that, or the people running things are just REALLY stupid and this is all one big unfortunate unintended consequence of central planning, I'll let y'all decide.
People's out of pocket annual responsibility for their "health care" is SKYROCKETING. Grubermerica.
Health Premiums Have Climbed $4,865 Since Obama Promised to Cut Them $2,500Yeah, I know, medical tourism is inconvenient because too many maladies are emergent. Armed with a passport and prior investigation and research, you could save a bundle via medical tourism.
Dental go to Mexico border towns, medical go tto the far east, Thailand or Phillippines. I'm in a freak niche and rely on VA care. Unlike the constant barrage of propaganda, I find it to be MORE than satisfactory. Quite good as a matter of fact. I do not feel sorry for people forced on Obamacare because they allowed Obama to get elected and then reelected. Patriots are one of the smallest minorities in this nation.
Dental in Mexico? That is definitely a flight from reality...most dental maldies are a result of inattention and neglect...not improved by 1/2 @$$ care in Border Mexico...Good luck!
"Every one seems to be able to afford to have it done right the second time"
Social(ist) Programs for the poor, designed to enrich the 1% under the democraps. WAR designed to protect the interests of the socialist Jew federal reserve bankster cartel under the repukes.....
I AM GAURANTEEING A REPUBLICAN PRESIDENTIAL VICTORY, unless it's Trump, then they'll have him JFK'd
p.s., I abhor down arrowing cowards who don't explain where I am wrong.....I guess there are some democrats here....
Think about how many times in just the last 20 years when either the Democrats or Republicans held the Presidency, House and Senate and didn't implement some their "core beliefs" like smaller government for instance. The real differences between the two major parties are what?
What? I'm not supposed to reverse mortgage my "paid for house" for Viagara and Russian Brides? How about lottery tickets and fantasy football pools?
Then I got nothing, no plan... /s
Honey.....I just increased our cash flow.
I cancelled our life insurance payment.....took out a reverse mortgage, filed for SS Disability and I'm tapping our life savings.
Happy Days are here again !!
Or, a dozen ounces of gold and a few hundred of silver?
bernankike went missing since 2 months i assume he died and no one even noticed
I wonder if Bernanke could maintain that same smug and pious look if a power-drill was boring through his pectoral muscle? Just curious...
Oooo, dicey. What size bit are we using?
I vote for a 5/8ths paddle bit, but that's just my preference.
I don't know, a big fat friction bit, like for concrete sounds really slow and painful
+1 for the understandable spelling error.....It's funny how any criticism of Jews is automatically attacked, even if it is true.....
I ended up getting into my IRA.
Got laid off by U.S. Steel along with a shit ton of other folks.
Every town in a 30 mile radius looks dead.
Hooray recovery!
Need to slip into Mexico. Get a good tan. Loose the passport. Slip back over the border.
Get job painting, concrete, drywall, landscaping, etc. Get paid cash. 1099. Don't file. If an authority questions you, " no habla Engleesh".
This is a great country if you don't have to abide by the rules and laws, no taxes, etc. As a bonus, all the politicians are clawing each others eyes out to help you.
Side note: If your Black, your screwed. You're in the bag. Automatic dem vote. 98% Obama? I wouldn't expend energy on you either. You're owned. In the bag. Usefull idiots. Johnson was right. Now Obama's job is to get the wetbacks to vote Democrat for the next 100 years.
If you White, nobody gives a shit. Maybe if your gay.
You'll never make it to Mexico after Trump's wall goes up, better hurry now.
Heh.
Already live in TX, and have a good tan.
I was talking to the owner of a roofing co. at the hardware store the other day. He was lamentinig on US Steel laying people off. I guess suddenly, and according to him, there's thousands of roofers, welders, and handymen running amok. Cutting prices left and right just to make a dime. Even the illegals feel it.
Green shoots bitches....!
welcome to the recovery hoes...!
PHYSCHE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Recovery Summer SIX by Ted's calculations.....I wonder if he is still stacking?
I tapped out my Roth this year and used the proceeds to buy $1100 gold coins. Other than hurting my foot if I drop a tube, I feel much safer with my stack than I do owning stocks or paper gold held with a brokerage.
WayToGoJose!
A lot of people could live off 3% interest but there is none
A lot of people are just FedFucked to boot
If I could get 3% I'd be in fat city instead of forced to play the fucking casino. Fuck you Ben you cunt. I will piss on you one day. Book it
wipe that smug look off your fucking face.
Render unto Caeser...
They are taking back the digital ether they created in the first place. If you have put your labor into something that wasn't real, you haven't lost anything now. It was taken the moment you willingly handed over your chits at the outset. It's just a claim against someone else's assets, right?
Maybe those dumbshits who bought property and physical goods were onto something while the smart people were laughing at them, and all the "interest" being lost by buying things in the real world instead of plowing their labor into the phantom zone called the stock market.
The 401k is a lie.
Man, I bet people crowing about you 'saving the world' would really give one a big head.
I didn't know they give 401k's to wait staff and blue-collar workers. I'm a bit confused here
Blue collar workers are dipping into their 401's because they are now wait staff.
If they're lucky.
http://store.counterpunch.org/michael-hudson-episode-19-2/
Dear Leader says everything is great - er. Now cry for him.
Tapped and converted. Thank you very much!
i wonder if greenspan, bernanke, yellen read any financial sites and realize how many people hate them. i realize that, maybe, one in twenty are in equities. of course, they "are smart." and, most happy with this old hag. I cant help but wonder what it feels like to be hated as much as hitler. I wonder how it feels to throw grandama down the stairs so you can set up your next job and suck a fat pension from the taxpayers that you are raping.
This is a special place in hell for this woman. I wish her a speedy trip. I would dance an Irish gig and drink a shot of bushmills if she croaked. Im not Irish or drink. Special occasions require a celebration.
The bankers must repay us.
They stole "many thousands of trillions" of dollars, which amounts to millions of dollars each for every person on the planet.
Source: http://divinecosmos.com/start-here/davids-blog/1023-financial-tyranny
They stole more than just money.See Rogan below.
It is time for us to take it back!
Joe Rogan Experience #331 - Dr. Steven Greer
https://youtu.be/0gVLv5eg4Xg?t=5093
Don’t forget to send your thank you card to you know who:
OK
Thanks, Ferretface. What a fine mess you've made. Poverty and despair are laid at your ferret feets.
Dear Ben, I can't wait for the day I get to beat the shit out of you for stealing my money. Fuck You Bernanke
I can't wait for the day when someone in the position to do so, does.
Wouldn't a year long tax holiday on investment distributions be a nice jolt to the economy?
Basically helicopter money after the fact.
Can't change my avatar. Are you guys asleep? _JOHNLGALT?
Who's John Galt?
I think he's that guy that gave it all back the way he found it
Two incomes and life is good, so cashing out a sizeable traditional IRA will result in an AMT enema on top of the taxes and 10% penalty. I converted it from a 401k to an IRA after leaving a prior employer so I could at least have the liquidation option. If shit starts going down hard, the money markets will be frozen. Tough call on what to "invest" it all in with all the market manipulation. Self-directed IRA? Not sure it's even worth the hassle. I just want to be done with all their farking rules.
For a second there I thought maybe gold was finally going to do something after all. Besides just continue going down forever, I mean. Ha, ha, the joke was on me.
A 10% tax penalty for early reclaims of your 401K's and the like? Come to Belgium - there it's 50%. FIFTY PERCENT. Direct income tax for someone making "a so called good living" as an executive : before taxes 11.000 euro/month, after taxes 4.000 euro's. And that's EXCLUDING VAT ( 21% ), housing tax, municipal tax, driving tax, compulsory insurances ( car, house, third party liability, debt default, ... ), provincial tax, fuel tax for the car ( 75% of the total fuel cost ), sewer tax, electricity distribution tax ( 50% ), municipal dump tax, succession tax ( from 3% up to 27% in "straight hereditary line" ) - the bloody USSR looked like a paradise compared to THAT. I emigrated 7 years ago - fuck Belgium.
That's madness.