Archive for the ‘Wall Street’ Category

CONGRESS IS COMING FOR YOUR IRA

Saturday, July 13th, 2019

 

 

The Secure Act which is before the U.S. Senate for a vote can impact the taxes of  many of us and our children and grandchildren.   Take the time to look at this information and contact your senators if you would like to comment on how you want them to vote on  this bill.   Nancy
THE WALL STREET JOURNAL

Congress Is Coming for Your IRA

The Secure Act would upend 20 years of retirement planning and stick it to the middle class.

By

Philip DeMuth  Mr. DeMuth is author of “The Overtaxed Investor: Slash Your Tax Bill and Be a Tax Alpha Dog.”      July 10, 2019

Like grave robbers opening King Tut’s tomb, Congress can’t wait to get its hands on America’s retirement-account assets. The House passed the Setting Every Community Up for Retirement Enhancement Act, known by the acronym Secure, in May. The vote was 417-3. The Secure Act is widely expected to pass the Senate by unanimous consent. While ostensibly helping Americans save for retirement, the bill would actually reduce the value of all retirement savings plans: individual retirement accounts, 401(k)s, Roth IRAs, the works.

The main problem with the Secure Act is that it eliminates the stretch IRA,the fixed star in the financial-planning firmament since 1999. The stretch IRA lets savers leave their retirement accounts to children, grandchildren or other beneficiaries. Under current rules, the recipients can parcel out the required minimum distributions from the accounts over the course of their actuarial lifetimes. Payouts tend to be relatively small for children but grow in size over the decades until the inherited IRA might comfortably provide for the child’s retirement through the power of tax-deferred compounding. A parent could die with the knowledge that, whatever vicissitudes their children might experience in life, they won’t have to worry about retirement.

Congress wants to kill this. The Secure Act gives nonspouse beneficiaries 10 years to pull out all the money in an IRA. The effect would be to make more of an IRA subject to higher taxes sooner, as distributions are made in supersize chunks. As much as one-third more of an inherited IRA would get gobbled up by taxes than under current rules. When the Tax Cuts and Jobs Act expires in 2025, taxes will rise across the board. If President Trump signs the Secure Act into law, the stage will be set for a taxpocalypse sometime in the next decade.

In exchange for its windfall under the Secure Act, Congress will push back the age at which retirees must take their first required minimum IRA distributions from 70½ to 72. This isn’t the deal American savers were promised when they made contributions to their IRAs the last 20 years. Before, the optimal approach was for savers to leave their IRAs to their children or grandchildren and stretch the payouts over decades.

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“MAD MAXINE” AND WALL STREET

Wednesday, December 12th, 2018

Maxine, the fox guarding the hen house.   Stephen Moore gives us a  sweet bit of history regarding the  financial crisis.   Don’t you just love those Dems and their pious self righteousness !  Nancy

www.washingtontimes.com/news/2018/nov/11/why-wall-street-must-get-ready-for-maxine-waters/

WASHINGTON TIMES

Why Wall Street Must Get Ready for Maxine Waters

By Stephen Moore • Stephen Moore, a columnist for The Washington Times, is a senior fellow at the Heritage Foundation. His new book with Arthur Laffer is “Trumponomics.”

November 11, 2018

Democratic Rep. Maxine Waters of California appears a lock to become the next chairman of the powerful Financial Services Committee. Ms. Waters is pledging to be a diligent watchdog for mom and pop investors, and recently told a crowd that when it comes to the big banks, investment houses and insurance companies, “we are going to do to them, what they did to us.” I’m not going to cry too many tears for Wall Street since they poured money behind the Democrats in these midterm elections. You get what you pay for.

But here we go again asking the fox to guard the hen house.

Back during he the financial crisis of 2008-09, which wiped out trillions of dollars of the wealth and retirement savings of middle-class families, we put the two major arsonists in charge of putting out the fire. Barney Frank of Massachusetts and Chris Dodd of Connecticut were the cosponsors of the infamous Dodd-Frank regulations. Readers will recall that good old Barney resisted every attempt to rein in Fannie Mae and Freddie Mac and said he wanted to “roll the dice” on the housing market. That worked out well.

Meanwhile, Mr. Dodd took graft payments in the form of low-interest loans from Countrywide, while greasing the skids for the housing lenders in these years. Instead of going to jail or at least being discharged dishonorably from Congress, he wrote the Dodd-Frank bill to regulate the banks.

(more…)

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FACEBOOK TO BANKS: GIVE US YOUR DATA, WE’LL GIVE YOU OUR USERS !!!!!

Monday, August 6th, 2018

 

I, for one, object !  How about you ?  Nancy

THE WALL STREET JOURNAL

Facebook to Banks: Give Us Your Data, We’ll Give You Our Users

Facebook has asked large U.S. banks to share detailed financial information about customers as it seeks to boost user engagement

August 6, 2018
Write to Emily Glazer at emily.glazer@wsj.com, Deepa Seetharaman at Deepa.Seetharaman@wsj.com and AnnaMaria Andriotis at annamaria.andriotis@wsj.com

The social media giant has asked large U.S. banks to share detailed financial information about their customers, including card transactions and checking account balances, as part of an effort to offer new services to users.

Facebook increasingly wants to be a platform where people buy and sell goods and services, besides connecting with friends. The company over the past year asked JPMorgan Chase JPM -0.31% & Co., Wells Fargo & Co., Citigroup Inc. -0.14% and U.S. Bancorp USB +0.08% to discuss potential offerings it could host for bank customers on Facebook Messenger, said people familiar with the matter.

Facebook has talked about a feature that would show its users their checking-account balances, the people said. It has also pitched fraud alerts, some of the people said.

Data privacy is a sticking point in the banks’ conversations with Facebook, according to people familiar with the matter. The talks are taking place as Facebook faces several investigations over its ties to political analytics firm Cambridge Analytica, which accessed data on as many 87 million Facebook users without their consent.

One large U.S. bank pulled away from talks due to privacy concerns, some of the people said.

Facebook has told banks that the additional customer information could be used to offer services that might entice users to spend more time on Messenger, a person familiar with the discussions said. The company is trying to deepen user engagement: Investors shaved more than $120 billion from its market value in one day last month after it said its growth is starting to slow.

Facebook said it wouldn’t use the bank data for ad-targeting purposes or share it with third parties.

(more…)

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REPEALING DODD FRANK

Thursday, June 7th, 2018

 

THE WEEKLY STANDARD

Regulatory Release

May 24, 2018
The partial repeal of Dodd Frank could have gone farther, but it’s a good start.

In 2010, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, and President Obama signed it into law. The legislation, more than 2,000 pages long, imposed cumbersome regulations on financial institutions, which the bill’s authors took to be responsible for the 2008 financial crisis and the consequent recession. The law also established the Consumer Financial Protection Bureau, or CFPB, an advocacy agency for consumers that, to no one’s surprise, quickly turned into a Naderite anti-corporation attack dog.

Complicated laws passed in the middle of a crisis are guaranteed to make things worse in the long run, and so Dodd-Frank proved. The Democrats, who controlled both House and Senate in 2010, took the blinkered view that the financial crisis had come about exclusively thanks to the unregulated excesses of the private-sector financial industry; regulating that industry was, for them, the only rational response. The law thus deprived the market of liquidity in the middle of a recession—with predictable results.

The Democrats ignored two important points. First, the role of the federal government itself: Government-backed mortgage giants Freddie Mac and Fannie Mae—then as now boasting powerful allies in Congress—encouraged precisely the sort of risky and foolish loans that led directly to the housing-market collapse and attendant financial meltdown. Second, what many of the investment banks did was already illegal: “cooking the books,” to use the popular term. To that extent, it was an enforcement problem, not a regulatory one. Greater regulation of investment banks largely missed the point—though it allowed powerful Democrats in Congress to blame someone other than themselves for the crisis. (The bill’s authors, Chris Dodd of Connecticut and Barney Frank of Massachusetts, both had a long history of encouraging Fannie and Freddie’s worst practices.) One of the law’s further follies is that it shackled small and mid-sized banks with the same provisions despite the fact that they had nothing to do with the financial crisis.

(more…)

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MCMASTER’S # 2 – DINA ‘HABIB’ POWELL

Saturday, September 9th, 2017

 

Dina ‘Habib’ Powell is the US Deputy National Security Advisor right under McMaster. Still question why the NSC is getting rid of its best people?

www.breitbart.com/big-government/2017/09/07/clinton-cash-dina-powell-partnered-with-clinton-foundation-for-goldman-sachs-globalist-initiative/

Clinton Cash: Dina Powell Partnered with Clinton Foundation for Goldman Sachs Globalist Initiative

NEW YORK — When she served as president of the Goldman Sachs Foundation, the philanthropic arm of the Wall Street giant, White House Deputy National Security Adviser Dina Habib Powell repeatedly partnered with the Clinton Global Initiative for a globalist women’s project that served as the centerpiece of Goldman’s charitable foundation.

Besides partnership with CGI, Powell’s foundation also directly funded the Clinton Foundation and partnered with Hillary Clinton’s State Department. Powell herself was associated with numerous groups and projects linked to the Clintons.

Powell served as president of the Goldman Sachs Foundation, where she ran the foundation’s projects after Goldman Sachs was implicated in the 2007-2008 financial crisis and sought to resurrect its shattered image.

The Clinton Global Initiative (CGI) was founded by Bill Clinton in 2005 as a part of the controversial Clinton Foundation. CGI was co-founded by Doug Band, co-founder and president of Teneo Holdings. Powell’s now ex-husband, Richard C. Powell, is president of Teneo Strategy, an arm of Band’s Teneo Holdings.

Powell, an Egyptian-American, reportedly received a salary of $2 million per year from Goldman Sachs. Her financial disclosure form from this year reveals salary, benefits, cash bonuses and equity from Goldman Sachs totaling $6,128,950.

As head of the Goldman Sachs Foundation, she specifically oversaw two major charitable initiatives, one called 10,000 Women and another named 10,000 Small Businesses. 10,000 Women aims to provide at least that number of women around the world with a business and management education to further economic opportunities and global financial growth. 10,000 Businesses, according to Powell’s Goldman bio, “provides small business owners in the US and UK with business education and access to capital.”

The projects were widely viewed as Goldman’s efforts to resurrect its tarnished image after the firm was accused of unsound practices that allegedly helped precipitate the financial crisis. “Engaging wasn’t just the right thing, it was necessary, especially in the wake of the financial crisis when people said we weren’t doing enough,” John F.W. Rogers, Goldman Sachs’ chief of staff, told the New York Times of the company’s charitable efforts.

Goldman would later agree to pay a $5 billion settlement to the Justice Department for its alleged role in the financial crisis. “This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail,” acting associate attorney general Stuart Delery announced in a statement when the settlement was finalized.

(more…)

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THEY WANT YOUR IRA

Saturday, April 9th, 2016

 

www.wsj.com/articles/they-want-your-ira-1459985170

THE WALL STREET JOURNAL

They Want Your IRA

The White House pushes investors toward government accounts.

Secretary of Labor Thomas Perez in Washington D.C. on April 30, 2015.
Secretary of Labor Thomas Perez in Washington D.C. on April 30, 2015. Photo: CQ-Roll Call,Inc.

The Department of Labor says its so-called fiduciary rule will make financial advisers act in the best interests of clients. What Labor doesn’t say is that the rule carries such enormous potential legal liability and demands such a high standard of care that many advisers will shun non-affluent accounts. Middle-income investors may be forced to look elsewhere for financial advice even as Team Obama is enabling a raft of new government-run competitors for retirement savings. This is no coincidence.

Labor’s new rule will start biting in January as the President is leaving office. Under the rule, financial firms advising workers moving money out of company 401(k) plans into Individual Retirement Accounts will have to follow the new higher standards. But Labor has already proposed waivers from the federal Erisa law so new state-run retirement plans don’t have the same regulatory burden as private employers do.

This competitive advantage could be significant. Last month the board of California’s new “Secure Choice” retirement plan wrote to state legislators about their “exciting win” in Washington. They reported that employers enrolling workers in the new government-run plan “would have no liability or fiduciary duty for the plan.” Score! The California bureaucrats added that “we have been given the green light to auto-enroll workers into an Individual Retirement Account (IRA).”

(more…)

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FANNIE AND FREDDIE FOREVER

Thursday, December 31st, 2015

 

THE WALL STREET JOURNAL
FANNIE AND FREDDIE FOREVER
Prior to the financial crisis of 2008, these two government-created behemoths owned or guaranteed more than $5 trillion in mortgage debt. When the housing boom went bust, taxpayers were forced to provide a $188 billion bailout to the toxic twins—and endure an historic financial crisis. So the taxpayer interest is in shrinking and eventually shutting down Fan and Fred.
But these days the Federal Housing Finance Agency that supervises the twins under federal “conservatorship” seems to view itself as the official preserver of Fan and Fred’s market share. So instead of simply telling the mortgage giants to stop buying and guaranteeing so many mortgages, the regulator has been encouraging the use of ever more complex financial instruments to keep Fan and Fred at the center of this multi-trillion-dollar market.

One Fan and Fred innovation—check your wallet when that word is used in government—is to use synthetic collateralized debt obligations (CDOs) to offload some of the mortgage risk they are holding. These new instruments are essentially a way for the mortgage giants to buy insurance against the possibility that lots of mortgage borrowers don’t repay the money they owe. But how about simply not holding these risks in the first place? Then taxpayers would have no need for insurance.
Fan and Fred are selling the CDOs to private investors, who are getting compensated with juicy yields in return for theoretically accepting much of the default risk in Fan and Fred’s bundles of mortgages. The program is ramping up and now covers at least some of the risks on more than $800 billion in mortgages of the more than $4 trillion that Fan and Fred still own or guarantee.
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COMMITTED TO SHATTERING THE AMERICAN DREAM

Tuesday, January 28th, 2014

 

THE WASHINGTON TIMES
COMMITTED TO SHATTERING THE AMERICAN DREAM

American dream in trouble from president’s policies

President Obama has all but announced that this fall’s House and Senate campaigns should focus not on the collapse of American influence abroad, or on the continuing disaster that we know as Obamacare, or even on the apparent inability of his policies to create jobs, but on “income inequality.”

The mantra from the administration, like the rantings of the “Occupy” crowd and the new finger-pointing quasi-Marxist mayor of New York City, is that in today’s United States, it is impossible to get ahead unless one is born rich, works on Wall Street or finds some other way to profit from the misery of others.

Their rhetoric and proposed policies play on envy and remind one of the class warfare that has dominate European politics for so long.

Historically, betting on class warfare as a way to win a U.S. election is a bad bet. The United States is not Europe, and Americans have never been envious of the success of others. Americans have always believed in what almost from the beginning has been known as the American dream. The president is betting this is no longer true.

The belief that a political focus on “income inequality” and the politics of class envy will work is, in reality, a challenge to the very concept of the American dream.

Class envy and class warfare have never appealed to many Americans for the simple reason that most Americans of every background have always believed that through hard work, they or their children and grandchildren would achieve a freer, happier and more prosperous life than that enjoyed by their parents and grandparents. (more…)

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THE YEAR OF THE WASHINGTON POWER GRAB AND COMMON CORE DOESN’T ADD UP TO STEM SUCCESS

Friday, January 3rd, 2014

 

The Wall Street Journal is making it very difficult to forward their articles in print mode as I have always done.  Some of you have told me that the links do not always open up for you.    Please give me some feedback if you are having difficulty opening up the links.  I am persisting in trying to send out these articles because the Journal’s op-ed page covers so many complex  issues with in-depth information.   The following two articles are exceptional.   Nancy

THE YEAR OF THE WASHINGTON POWER GRAB  – Wall Street Journal  by Kimberley A. Strassel

COMMON CORE DOESN’T ADD UP TO STEM SUCCESS  by Sandra Stotsky – Ms. Stotsky was a member of Common Core’s Validation Committee from 2009 – 20010.  She is professor emerita at the University of Arkansas.    My Stotsky was also one of our expert panelists at the September 19, 2013
 ICON Lecture Series on Common Core in Durham, North Carolina.
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OBAMA’S POLICIES HAVE HELPED WALL ST. FAT CATS

Monday, November 25th, 2013

 

Obama’s Policies Have Helped Wall St. Fat Cats

By Jack Kellyhttp://dyn.realclearpolitics.com/authors/jack_kelly/ – November 24, 2013

Jack Kelly is a columnist for the Pittsburgh Post-Gazette and The Blade of Toledo, Ohio.

Page Printed from: www.realclearpolitics.com/articles/2013/11/24/obamas_policies_have_helped_wall_st_fat_cats_120768.html at November 24, 2013 – 08:37:14 PM CST

The number of Americans living in poverty rose by the equivalent of the population of Massachusetts during President Barack Obama’s first term. By the time his second ends, “black people will have lost ground in every single leading economic indicator category,” television talk show host Tavis Smiley said last month.

From 2009 to 2012, the top 1 percent received 95 percent of income gains, a study by University of California-Berkeley economist Emmanuel Saez indicated.

That’s where you find the “superstars” who make megabucks in sports, entertainment, technology and finance, said economists Steven Kaplan and Joshua Rauh. You’d expect them to do better.

But during the presidency of George W. Bush, the top 1 percent garnered just 65 percent of income growth, Prof. Saez said.

The stock market has set all-time highs despite mostly dismal economic news — thanks to “quantitative easing” (money creation) by the Federal Reserve Board. The top 1 percent own 83 percent of U.S. stocks.

The boon to Wall Street has been a blow to the middle class. Near-zero interest rates undermine savings.

QE was supposed to make credit available to “Main Street” businesses crunched by the recession. That didn’t happen, said Andrew Huszar, point man for the Fed’s bond purchases. (more…)

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