ICON Commercial Lending, Inc. 7086 South Highland Drive, Suite 250
Salt Lake City, UT 84121
1-866-956-5554
ICONmd@gmail.com
The Great 401K Stock Loan Scandal – How Wall Street Minted Money While Retirees Picked Up the Losses
During the “Go-Go” Wall Street days of a few years ago, some companies got rich by being middle-men between 401k mutual funds and short sellers who wanted to borrow their stock.
The short sellers put up collateral, agreed to pay dividends, and paid a small amount of interest. These middle-men companies took a big slice of the earnings. The 401k funds got only a little, but did not complain because they thought it was essentially a risk free source of extra money.
Unfortunately, the middle-man companies overseeing the transactions got greedy, and started investing the collateral in commercial paper, instead of safer T-bills. When the financial crisis hit, and Lehman Brothers went bankrupt, there was a panic in the commercial paper market, and some of the invested collateral suffered losses.
These Wall Street firms then passed the losses onto the funds. Ultimately, it was the “little guy retirees” who are paying the price. Effected S&P 500 funds, for example, lagged their benchmark index by 11 basis points (0.11%) before fees. Mortgage-backed funds lagged by up to 53 basis points (0.53%).
Even though these losses caused by poorly invested collateral are insignificant compared to the overall loss in the mutual funds (e.g. the S&P 500 index lost 36% in 2008), they still angered some investors – who have filed class action law suits.
Overall, this situation seems to be limited to mutual funds. People with brokerage accounts who buy individual stocks do not have to worry. All the major brokerages keep 100% of any fees from lending securities to short sellers. In return, they cover any losses.
Today stock loans are very popular. Since the financial markets have been turned up-side down and banks are not lending, one method of financing has gained a lot of attention – securities based lending.
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Securities Lending is a long-established process. In fact, hundreds of successful stock-lending transactions have been executed involving the American Stock Exchange (AMEX), National Stock Market and Small Cap Stock Market (NASDAQ), New York Stock Exchange (NYSE), Over-the-Counter Bulletin Board (OTCBB), and certain foreign exchanges.
For those with money invested in marketable securities, there is a safe way to leverage their assets and take advantage of the golden opportunities now available to cash-in on terrific RE investment opportunities which are available today.
If you are a forward-thinking investor who wants to retain the future ownership of your assets as well as leverage the present value of your securities for immediate cash needs, securities lending (also known as stock loans) can be a terrific program.
Securities base loans are –
· Simple & Quick – NO Credit Check / NO Income Verification / NO Upfront Fees / NO Closing Costs / NO Personal Guarantee
· Loans are “Non-Purpose” – loan can be used for virtually anything borrower wants to accomplish (personal or business)
· Loans are “Non-Recourse” – giving the borrower the opportunity to simply “walk away” if the collateral falls below a set floor amount
· High Loan-to-Values – up to 80% LTV (depending upon security); which is much higher than banks and brokerage companies can offer
· Loans are Interest Only – principal payment at maturity; otherwise loans can be refinanced or extended
· Low Fixed Interest Rates – usually between 2% to 4%
· Loan Term – minimum of 3 yrs; also 5 yr / 7 yr / 10 yrs
· Quick Funded – usually within 5 to 7 business days
Unsecured Unemployed Personal Loan – Don’t Require Placing any Security Next to the Loan Amount
Introduction
Waiting few years previously, loans for unemployed were a legend. Unemployed people couldn’t benefit any type of loan. Other than due to the growing rivalry, things have changed a lot. Lenders are at this time set to advance loans to unemployed people. Unsecured unemployed personal loan is as well one such loan that can be availed by such people with no placing any security against the loan total. That too with no asking for any security.
Information
As the name suggests this loan is unsecured in natural history. You don’t require placing any security next to the loan amount in order to benefit it. Loans for unemployed are also unlock to people pain from poor credit status other than for this they will have to convince the lender concerning their refund capability.
There are sure basics for availing unsecured unemployed loans. You must have lived at your present address for a time of at least one year. You must have a normal checking bank account and lastly you must be eighteen years of age or over in order to be qualified to benefit such loans.
Amount and interest
With unemployed loans you can benefit sensible amount of cash for all your urgent wants. The loan total depends upon your credit status and refund capacity. The APR of unsecured loans for unemployed ranges from 7.7% to 18.3 %. The typical APR being 10.9 %.
Usage
You can advantage loans for unemployed for any of your wants be it private or professional. You can make use of it for holiday, paying urgent bills similar to power bills, paying loan installments and consequently on.
Application
Applying for unsecured unemployed loans is very simple. You can also apply through physical lenders or via online process. Online application process is superior for the reason that it is extra suitable and hassle free.
To apply you immediately require filling up an online request form mentioning your contact information and the type of loan you wish for to benefit. Lenders will then obtain back to you with their proffer. create sure you search well before applying for the reason that with fine research you can benefit unemployed loans at very little interest rate and with flexible term and conditions.
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Why End the Federal Reserve?
Most people today do not understand where inflation comes from, how our money is printed, and who is in charge of printing our money. To make it worse the average American does not even know what the Constitution says about our government and money.
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To keep it simple, the United States Constitution says in article 1, section 8. “[Congress shall have the power..]To coin Money, regulate the Value thereof, and of foreign coin, and fix the Standard of Weights and Measures”. The Constitution does not give Congress the authority to print paper money themselves, let alone delegate control over monetary policy to a central bank.
Before the mid-twentieth century our currency was backed by an asset, more importantly it was backed by gold. For the longest time in our country the dollar was worth 1/20 of an ounce of gold. After the Federal Reserve was created in 1913 our government went on a mission to not only eliminate the gold standard but confiscate the gold from its citizens as well.
So you may ask why, why would the government do that? Why would they disregard the Constitution? Well it wouldn’t be the first time and probably not the last. The simple answer to those questions is this: When an asset such as gold backs money, government deficit spending is severely limited. With the creation of the Federal Reserve we have given the government the ability to have money printed out of thin air.
Like G. Edward Griffin said, “if you give someone the power to create money out of thin air, don’t be surprised when they create money out of thin air”. The world we live in today goes like this- The Federal Reserve prints our money and lends it to our government at interest. This loan is guaranteed by the taxpayers.
It is not a coincidence that the income tax was created in 1913, the same year the Federal Reserve act of 1913 was passed by congress. The Federal Reserve is a private bank held by private stockholders. We cannot audit the Federal Reserve. It is not owned or run by the taxpayers or the federal government.
I say “let’s end the Federal Reserve”. Congress does have the power to do that and we should demand that they do it.
Below is some quotes and text. There is a Federal Reserve Abolition Act that was brought to committee. It is called The Federal Reserve Board Abolition Act (H.R. 2755). It is still sitting in committee in congress. For many bills, this is the closest they will ever come to actually being debated on the floor of congress. We the people need to write our congressmen and demand they co-sponsor this and take it out of committee
Quotes:
G. Edward Griffin quotes:
“Inflation has now been institutionalized at a fairly constant 5% per year. This has been determined to be the optimum level for generating the most revenue without causing public alarm. A 5% devaluation applies, not only to the money earned this year, but to all that is left over from previous years. At the end of the first year, a dollar is worth 95 cents. At the end of the second year, the 95 cents is reduced again by 5%, leaving its worth at 90 cents, and so on. By the time a person has worked 20 years, the government will have confiscated 64% of every dollar he saved over those years. By the time he has worked 45 years, the hidden tax will be 90%. The government will take virtually everything a person saves over a lifetime”.
Rep. Ron Paul to Congress:
“Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy. The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the federal government to erode the American standard of living via an inflationary monetary policy.”
“In fact, Congress’ constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our nation’s founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy.”
On November 22, 2008 thousands of people rallied to protest the Federal Reserve. The Rallies toke place from Washington D.C. to San Francisco.
If you are interested in joining the protest and help bring awareness to the biggest scam in American history visit EndTheFed.us
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