How to avoid TSP calamity if debt ceiling is not raised

[nnuut]

CRAPOLA, they are preaching the end of the world, HA!!! They just know that this would ruin and deny their Progressive agenda. BRING IT ON!
We want our economy back.

 

[Boghie]

Folks,

The train has left the station. I really don't think the Treasury can control the bond market. They will not be able to keep interest rates low.

Soon enough Bernanke will raise short term rates. Even before he makes his move the huge bond and soverign funds will demand higher rates. PIMCO has made its move - how many other bond holding entities have made theirs.

We now have about $5 Trillion more in short/intermediate term debt than we had 27 months ago. We have grown our debt by 1/3rd in months. Yowser.

Soon, nobody will care what the Treasury does or what the FED does (if the FED does not defend the dollar).

This is going to be ugly. Especially for the 'F Fund'. And, I would NOT count on the 'G Fund' assets being liquid. How many folks thought their overleveraged Lehman Brothers money market funds would always be liquid assets? Yowser.

There are no good places to hide. My guess is the best will be either the C or the I funds...

 

[FAB1]

FAB1,

While I couldn't more strongly disagree with your feelings on the subject, I regret having provided any political commentary in my initial post
Nigel

:suspicious: Youre missing my point - you are strongly disagreeing with many peoples feelings on this MB. My post was a "shot across your bow" as a warning.

There are a lot of fine MBs to strongly disagree with conservatives, Im sure you can locate one to fit your needs. Or come see us on Beltway Talk - Jim needs all the help he can get over there. :laugh::laugh:

 

[NigelSt.Hubbins]

FABI,

You seem a little dim, so let me tell you again that I'm really only interested in conversing about financial matters on this website. I truly don't care if my presence here offends you (or the "many [other] people" you claim). There seems to be others who are in fact willing to share information civilly.

I know from what little you have written that the possibility of our having a meaningful dialog on political matters is remote at best, and I can't imagine why I would want to waste my time. So go off and try to bully someone else.

 

[PessOptimist]

FABI,

You seem a little dim, so let me tell you again that I'm really only interested in conversing about financial matters on this website. I truly don't care if my presence here offends you (or the "many [other] people" you claim). There seems to be others who are in fact willing to share information civilly.

I know from what little you have written that the possibility of our having a meaningful dialog on political matters is remote at best, and I can't imagine why I would want to waste my time. So go off and try to bully someone else.

Hmmm. Rerring to some one as "a little dim" seems to prove you cannot "share information civilly" Nice british accent thing in your posts. You do it well. You forgot to include all your awards from HRH in your name.

Cheers

 

[mick504]

Don't ya think the Standard and Poor's slaming the US Govt about their high debt might get our politicians from both parties I hope to say....yeah it's time we cut our debt. If the debt ceiling has to be raised....only if a debt reduction plan is in place. On the subject of worring about the TSP funds....well...if the market dumps....I'll just throw it into G...cause I can't really afford gold or silver...as it's not an option for the TSP...I wish it was...and I'm not buying individual stocks anymore cause I'm retired....! If the debt ceiling is raised or not raised...I personally don't see any major calamity....!

 

[FAB1]

FABI,

You seem a little dim, so let me tell you again

Dont spare my feelings, Nige

:embarrest: I am humbled in your presence so carry on, sahib.

Oh BTW its: FAB1(one) not FAB I (eye)

 

[FAB1]

I'll just throw it into G...cause I can't really afford gold or silver...!

Why would you buy it even if you could??

In 1933 FDR seized private gold holdings with an EO. Surrender your gold coin, bullion or certs - or enjoy a 10 yr stay in one of our placial Federal "hotels".

If they did it once they can do it again - no safety except in your own pantry. Buy Food and Provisions (bullets).

 

[jpcavin]

If they did it once they can do it again - no safety except in your own pantry. Buy Food and Provisions (bullets).

This brings to mind a guy that I work with. We frequenty discuss the economy, markets, and TSP. He always states that "you can't go wrong with bullets.":laugh:

 

[FAB1]

This brings to mind a guy that I work with. We frequenty discuss the economy, markets, and TSP. He always states that "you can't go wrong with bullets.":laugh:

In '33 in wouldnt be hard to hide your gold and sit on it a while.

But in this electronic age, dont think they wont know who has the gold.
Banks will be forced to open safety deposit boxes - theres a paper trail
to sniff you out and your floor safe, isnt safe.

Then your Lead will be more valueable than any Gold or Silver.

 

[SkyPilot]

FABI,

You seem a little dim,

"Dim"?

Clearly you do not understand the character and nature of this board. You are welcome to participate here, but your contemptuous attitude will isolate you. Maybe it is best if you read and learn for a while, then when you understand this is not a forum site that will long tolerate this silliness you may wish to try again.

 

[jpcavin]

In '33 in wouldnt be hard to hide your gold and sit on it a while.

But in this electronic age, dont think they wont know who has the gold.
Banks will be forced to open safety deposit boxes - theres a paper trail
to sniff you out and your floor safe, isnt safe.

Then your Lead will be more valueable than any Gold or Silver.

I could always use lead to protect gold.

 

[Boghie]

So, folks, what did we learn during yesterday's burp:

• G Fund: +0.02 - However, I think that is the norm
• F Fund: +0.19
• C Fund: -1.10 - The best of our equity funds
• S Fund: -1.48
• I Fund: -2.00 - The worst of our equity funds

I postulated that the 'I Fund' would weather a United States sovereign debt crisis better than US equities or bonds. I was going the weather the barf storm in the 'I Fund'. Now, this little episode has demonstrated the fallacy in that.

I also thought the 'S Fund' would have a smaller plop than the 'C Fund' because it obviously has a smaller allocation in financials. Looking at the two of them in Schwab illustrated that this is not the case. Hence the failure.

The 'C Fund' is the equities winner. Ten days of yesterdays would result in a 12% loss. That is survivable, even for those who ride it all the way down. Why is this. Probably because these companies are multi-national and have large cash holdings. They will not need the borrow money or sell bonds at high interest rates for a while. The smaller companies still need liquid debt.

Still don't trust the 'F Fund'. The big holders will pump and dump it - leaving us little people slopping around in the mud.

Now, the 'G Fund'. My guess now is that the interest rate will increase during 'The Problems'. The assets have never been locked (even though they are borrowed against) before - but we have never run annual $1,600,000,000,000 deficits before. Things change:nuts:.

My current thought is to let things settle after the news and move to a 40% G and 60% C allocation. Still thinking. Think long, think wrong.

 

[alevin]

In '33 in wouldnt be hard to hide your gold and sit on it a while.

But in this electronic age, dont think they wont know who has the gold.
Banks will be forced to open safety deposit boxes - theres a paper trail
to sniff you out and your floor safe, isnt safe.

Then your Lead will be more valueable than any Gold or Silver.

Raiding safe deposit boxes wouldn't be anything new, they did that back in '33 too. We'll probably see currency controls at some point-to keep the big guys from moving funds out of the country too quickly. Brazil is already contemplating currency controls, read that the other day somewhere, don't recall where.

 

[grandma]

I could always use lead to protect gold.

-specific types of lead ? - like copper-coated? -if I remember the term correctly -

 

[FAB1]

I could always use lead to protect gold.

Your cash aint nothing but trash. When the stores are all bare, it wont buy you hash.

As for Buying Gold, well, pard, now ya been told.

And Lead may keep you well Fed and not Dead.

 

[jpcavin]

-specific types of lead ? - like copper-coated? -if I remember the term correctly -

I don't suppose it really has to be lead as long as it does the trick..
Lead
Copper
Depleted Uranium

Black Talon hollow points?:nuts:

 

[Boghie]

FAB1,

I have a mental picture of you on December 31, 1999 sitting outside the UniBomber cabin, in a wife-beater t-shirt, and a rifle across your knees. Drinking a cheap beer, banging the empty can on your head, and tossing it to the ground.

You will need lots of lead to stop the herd.

And, lots of long lasting food.

And, lots of water.


This is going to be a trading opportunity to make money on the margins. The American public is now aware of what needs to be done. We will adjust and overcome.

 

[jpcavin]

Fab1 in a wife-beater? Please say it isn't so.

 

[malyla]

This is going to be a trading opportunity to make money on the margins. The American public is now aware of what needs to be done. We will adjust and overcome.

The crucible is still not hot enough yet. Any solution now will be ill-formed and flawed until the underlying financial and tax loopholes are fixed. The amount of insulation around what the corporations and financial institutions are getting away with at the expense of the people has not decreased. Until that insulation is removed, the crucible will not get hot enough to forge a strong and equitable solution.