... and then claim ignorance about what their predecessors did in the wasteful spending of citizens' money. Sounds like another campaign speech. 2016?
Indeed, the word they used was "exchange." I over spoke when I used the word "confiscate." If it's a voluntary system then great. Hopefully it won't become mandatory.
One would have to think that the ramifications on the market would be significant if this were to happen. If they go the confiscation route, Dow 2000 might be realistic.
It may be voluntary, but any money taken from 401-k and IRA accounts will cause mutual fund redemptions and stock sales which will result in a broad based stock market decline. So once it starts the market will tank and there will be a stampede to participate, and the government will be encouraging the fearmongering.
Obviously, that would be the motive for such a proposal, and appears to be what Argentina is doing now. What other rational motive could there be for doing this?
Another paper by the same person (Teresa Ghilarducci) on the GRA idea: http://www.sharedprosperity.org/bp204/bp204.pdf
There's no way Congress can pony up dough like that without printing it. 2 Trillion borrowed for 10 years at 3% + TIPS (say 5% gross return). Thats an extra 50% (1 Trillion) they'd have to produce when the IOU comes due. Hard to generate returns like that when the money is loaned and invested in companies that work it. Instead, Congress wants to spend it, then borrow the shortfall...