From Rogue Money
Posted by Kenneth Schortgen
Ever since the U.S. financial system came hat in hand to beg taxpayers for a bailout back in 2008, it was only a matter of time before either Wall Street, or the government, would seek to find a way to steal the $19 – 25 trillion Americans have in their myriad of retirement accounts. And not withstanding Nancy Pelosi and Barack Obama’s attempts to connive individuals into shifting their 401K’s and IRA’s into government backed debt, most retiree’s money has been relatively safe over the past eight years since the Fed was providing enough ‘stimulus’ to feed the hunger of the banks and hedge funds.
However six years after conducting their first Quantitative Easing program, the central bank has come to the realization they have lost control over inflation and interest rates, and have begun to pull back from supplying the tens of trillions of dollars necessary to create the artificial ‘recovery’ that has seen the Dow soar to over 21,000.
And needless to say, this shutting off of the tap is severely affecting a significant player in the markets. And when you couple in the fact that these institutions are facing a growing number of redemptions, one hedge fund is salivating at the thought of finding a way to take control over some or all of the people’s retirement funds.
Alas, with companies increasingly opting for defined-contribution retirement plans (401k’s) in-lieu of defined benefit plans, combined with the trillions of dollars of losses that wall street has racked up for the nation’s largest pensions, it’s no wonder that ‘millionaire, billionaire, private jet owners’, like Stephen Schwarzman of Blackstone, are looking to get their ‘fair share’ of fees from America’s $4.8 trillion in 401(k) assets.
As Schwarzman told Bloomberg, “you have to have a dream,” and his dream is to apparently lay waste to a whole new pocket of American retirement wealth.