John Dillinger was once asked why he robbed banks for a living. He answered “Because that’s where the money is.” He correctly identified lucrative opportunities, but he failed to patiently develop a socially acceptable form of robbery; he was an unsuccessful parasite.
The first story on 60 Minutes last night was about 401k’s, those “managed” private investment vehicles, which, along with pensions and Social Security, were intended to help us retire in comfort. Of course 401k’s have tanked over the last year (and pension funding has gotten further behind actuarial necessities, an issue I’ll discuss in the future), forcing many out of retirement (and others to postpone retirement) and into competition for low end jobs while reducing consumer demand—both of which increase unemployment for younger workers.
A lobbyist for the 401k Industry raved about how good 401ks were, and that it was the fault of investors who lost big because they freely chose risky mutual funds rather than safe bond funds to invest in. OK, there is some truth to that….
But wait….. turns out that your typical 401k has also been bled year after year by hidden fees paid to the administrators of the 401k and to mutual fund managers (an industry whose growth parallels that of 401ks)—most of these fees are undisclosed, and have been kept secret by the 401k lobby! It was almost humorous to watch the lobbyist tiptoe between outright lies and an honest response that would severely curtail his lobbying career. He did show signs of latent personnel integrity, and I wish it well in the future.
Don’t be surprised, 401k’s form huge pools of money, and the managers of these pools, like all effective parasites, have developed methods for sucking money out without their hosts being aware of the process. One way the parasites anesthetize us is to take a small percentage of their blood money and set up a well heeled lobbyist who sends money to elected Representatives of both parties to keep us in the dark. That’s how it has worked for nearly 30 years; and we’ve been none the wiser. Take that John Dillinger!
Obama’s call for a more transparent government is critically important, more so than most of us realize, parasites hate being seen, and will create some of the most intense fighting in Congress and the Executive branches of government. Look at the stink over releasing the torture memos… hmmm…. Wonder what kind of parasites are scurrying around to get away from that light? Any suggestions?
So True. Do you know if you need a hardship withdrawal from Wells Fargo (either for eviction or foreclosure) there is a $25 processing fee. Talk about kicking someone when they are down!