Here are four recent news items:
1. Wells Fargo reports older people are borrowing from their 40lks to live.
2. Faber is getting ready to short the market.
3. Belkin sees a 40% drop in the market.
4. Poor people are being suckered into the market.
When those who are borrowing from their 401ks (no doubt hoping the economy recovers) cannot pay it back, it becomes a cash out. To cash out your 401K means you pay a 30% tax (at worst) plus a 10% penalty, so about 40% hit. That may be coming anyway.
You can short the market and actually make money within your 401K, but if shorting will work, the SEC will outlaw it at the precise time you will make money. I was there when they last did it. And never mind what strategy you find, if it works it will be forbidden as it works. The banks change the rules as the game progresses.
What did I do? Cash out. Take the hit. Invest everything is the means of production. Then it will not matter what happens in Washington or Wall Street. It is down to me and customers. As long as I listen to the customers, I'll be eating, and won't need loans or investments that may or may not work out.
Investment today means making money off of money, something forbidden by all religions. What is recommended is investing in projects in which all partners share the risk and profits. With banks involved you have risk where your partners have none. You do not have the right (religiously speaking) to agree to asymmetrical risk in your investments. You cannot agree to lose or not lose, when your partners (the big financial houses participating in the market) cannot lose. It ain't kosher.
The only kosher investment is to put your money into the business where you directly share the win or loss with the person who is running it. Or, open the business your self.
I am not financial advisor, but I know what I did. I pulled my money out.
Feel free to forward this by email to three of your friends.
1. Wells Fargo reports older people are borrowing from their 40lks to live.
2. Faber is getting ready to short the market.
3. Belkin sees a 40% drop in the market.
4. Poor people are being suckered into the market.
When those who are borrowing from their 401ks (no doubt hoping the economy recovers) cannot pay it back, it becomes a cash out. To cash out your 401K means you pay a 30% tax (at worst) plus a 10% penalty, so about 40% hit. That may be coming anyway.
You can short the market and actually make money within your 401K, but if shorting will work, the SEC will outlaw it at the precise time you will make money. I was there when they last did it. And never mind what strategy you find, if it works it will be forbidden as it works. The banks change the rules as the game progresses.
What did I do? Cash out. Take the hit. Invest everything is the means of production. Then it will not matter what happens in Washington or Wall Street. It is down to me and customers. As long as I listen to the customers, I'll be eating, and won't need loans or investments that may or may not work out.
Investment today means making money off of money, something forbidden by all religions. What is recommended is investing in projects in which all partners share the risk and profits. With banks involved you have risk where your partners have none. You do not have the right (religiously speaking) to agree to asymmetrical risk in your investments. You cannot agree to lose or not lose, when your partners (the big financial houses participating in the market) cannot lose. It ain't kosher.
The only kosher investment is to put your money into the business where you directly share the win or loss with the person who is running it. Or, open the business your self.
I am not financial advisor, but I know what I did. I pulled my money out.
Feel free to forward this by email to three of your friends.
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