Monday, November 29, 2010

Pitchfork to Pension Ratio

I trust all my readers had a wonderful Thanksgiving holiday. I spent mine in wonderful Oklahoma City with family and needed a rickshaw to get around I ate so much. There is just something about this holiday that resonates with me, the time of year, the smell of wonderful food in the house, the Lions losing on national TV. Well, at least they didn't embarrass themselves like they have in prior years! 

We are truly blessed and have much to be thankful for, which is why I had to turn off my computer during the holiday after catching wind of the story off Bloomberg that  Hungary Follows Argentina in Pension Fund Ultimatum seizing pension assets. Please note how this news was released Thanksgiving day, yes readers Thanksgiving day. Gotta love the thugs in power and the mainstream media that obeys their every word.  According to the Bloomberg piece;

'Hungary is giving its citizens an ultimatum: move your private-pension fund assets to the state or lose your state pension.

Economy Minister Gyorgy Matolcsy announced the policy yesterday, escalating a government drive to bring 3 trillion forint ($14.6 billion) of privately managed pension assets under state control to reduce the budget deficit and public debt. Workers who opt against returning to the state system stand to lose 70 percent of their pension claim'

“This is effectively a nationalization of private pension funds,” David Nemeth, an economist at ING Groep NV in Budapest, said in a phone interview. “It’s the nightmare scenario.”

Remember that back in 2001 the Argentine government seized private pension plans replacing the funds with government bonds which they then defaulted upon. As if that was not enough of an insult the crooks came back yet again in 2008 and took over privately managed pension plans. Can' t make this stuff up I tell ya'. What was that phrase I once heard? Oh yeah... "fool me once shame on you, fool me twice shame on me." 

Obviously, the government in Argentina was monitoring sales of pitchforks in the aftermath of pillaging the pensions and not observing any appreciable spike in sales decided it was A-okay to yet again loot the public purse. If only the Argentines would get as interested in these types of matters as they do with futbol but I digress.  

Is there a pitchfork to pension ratio?

Well it seems governments are over the planet have noticed the apathy in Argentina and are now all tripping all over themselves to tap this new source of free funds. We all know Ireland's problems and how their government has sold them down the river. Only a fool, or a bought and paid for shill on CNBC would deny that, yet not content with that the thugs in power there are now  looking to loot the Irish public pension plans. 

The hits keep on coming as this morning we received the news out of France that the French government is seizing 36 billion in pension assets. I would counsel the French government to remember that, while you can debate as to whom the guillotine was invented by, rest assured it was brought mainstream by the people of France against their ruling masters during the French Revolution. This little fact seems lost among the ruling elite there.

What a way to come back from a fantastic holiday! 

Actually I refuse to be brought down! I will ignore this news and shall turn on the gang at CNBC to find out which holiday retailer I should buy as this economy has without question recovered. Better yet, how much Spiders (ticker SPY) to load up on during this dip!

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.65 stop @ $7.98
Long 1 unit Barclays 20yr Treas Bond ticker TLT @ $95.61 stop @ $94.69


Anonymous said...

Would you or have you liquidated your own IRA, Roth IRA, or 401K plans to avoid the highly probable event of our government doing the same? As I don't believe there are enough private pensions available to rob here in America.

Harleydog said...


I am not a register investment advisor so I cannot give advice but if you are part of a group plan with your employer you need to consult with the plan provider or administrator to see what your options/ramifications are as to leaving and creating a self directed plan.

Every fortune 500 company plan is a private pension plan just as your personal IRA is whereas social security would be a public plan in my view.

I am in no way recommending one liquidate or not liquidate their pension at this decision carries significant tax consequences and is not to be taken lightly. You should seek expert counsel from both an investment and tax advisor.

thx for reading and the note.

Anonymous said...

HD, I should have given you an email address to respond to as I know that you can't advise me or anyone else's on their investments. My question was inappropriate for this forum and too personal. Sorry! I had come across Prechter's book some time ago and he had made the point that what the government makes up, they can take away tomorrow. So a person should take the penalty hit and tax consequences today rather than what TPTB decides you can have tomorrow. So it was with that echoing in my memory that I had asked not thinking about that some other reader would take it as your recommendation.
Wish I felt that I could find expert investment counsel! We are just not loaded enough for most firms to bother with and the retail guys will just try and churn the account. I've not found someone to help balance my more conservative approach with my husband's more "gambling" style. So I just keep reading far and wide to get my own education on these matters.