Something Wicked This Way Comes…Obama Planning Retirement Plan Bail-ins

HindenburgBy AGXIIK:

Obama is on a tear about the ‘size’ of IRA balances.  He says that Americans should not have IRAs beyond a certain limitThese limits would be imposed through changed in the tax codes to impose FAIRNESS in IRA matters.
HERE IS MY PREDICTION:  
Obama will propose bank bail-ins that incorporate a progressive pension plan expropriation based on retirement plan size and income streams.  It will start with the biggest plans, many sitting in offshore accounts.  These mega plans will suffer a large haircut, perhaps starting with 20% and progressing upwards to 50%, depending on how one acquired the wealth or how well connected one is.
Like the well-connected in Cyprus, those who know the haircut is coming can execute plans to remove their IRAs from government seizure.  Those who are not forewarned to this theft will wake up to find their $500,000 IRA  has been halved.
Cue the Hindenburg.

 

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Over on ZH is a recent Duran-ity that’s helps me gel the way the gummint will dig into our pensions.  I call it the bastard stepchild of Cyprus haircuts and the Ghilladuci GRA.  Obama is on a tear about the ‘size’ of IRA balances.  He says that Americans should not have IRAs beyond a certain limitThese limits would be imposed through changed in the tax codes to impose FAIRNESS in IRA matters.
He uses Romney’s $100,000,000 offshore IRA holdings developed by the increases in Bain Capital shares.  Opining that this is excessive, he that provided some talking points as to limits on IRA sizes.

This coming from a man who will have pension provisions and other perks that would easily top $1,000,000 a year not to mention the Obama library that would probably cover the better part of Kauai (sorry Hapa) and speaking engagement at $500,000 a pop, this is makes the word hypocritical seem tame.

HERE IS MY PREDICTION:   (Cue Ruffles and flourishes)
Obama will propose bank bail-ins that incorporate a progressive pension plan expropriation based on retirement plan size and income streams.  It will start with the biggest plans, many sitting in offshore accounts.  These mega plans will suffer a large haircut, perhaps starting with 20% and progressing upwards to 50%, depending on how one acquired the wealth or how well connected one is.   Remember those connected Cypriot bank account holders who got ample warning to remove their capital before the shut down 3 weeks ago.
Those who know the haircut is coming can execute plans to remove their IRAs from government seizure.  Those who were not aware or forewarned to this theft will wake up to find their $500,000 IRA  has been halvedIn Cyprus UK ex-pats had plans in the high 6 figures, representing a life time of savings.  They now have less by 40% or more and their plans are still in lock-down mode.

Once this plan has been fully implemented, the score settling against the less wealthy will commence. Those with plans ranging from $500,000 to $100,000 will see their IRA balances shaved, perhaps less than 40% but certainly in the 20% rangeThese plans have the misfortune of being held within in-extractable company retirement funds or if personally managed, will find  tax costs that could easily hit the 40% bracket plus penalties if the holders try to remove themselves from harm’s way.  A 20% haircut would seem small by comparison.

Damned if you do; damned if you don’t, the escape clause is either tax the tax hit and put the remaining balance out of the danger zone,  or remain in place and see your IRA at ground zero of the government’s plan to use your hard earned savings to build an Erewhon of Populist Fairness for those less fortunate.   Oh the humanity. 

Cue the Hindenburg.

 

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