Likes Likes:  0
Page 3 of 4 FirstFirst 1234 LastLast
Results 25 to 36 of 40

Thread: How SAFE is the G Fund?

  1. #25

    Default Re: How SAFE is the G Fund?

    Quote Originally Posted by alevin View Post
    I have no idea how Brit banks are structured as far as connectivity between investment banking arms (shadow banking) vs. traditional deposit-lending arms. (conservative) Glass-Steagall was repealled here which removed that firewall established during the GD for banks here.
    The shadow banking system is the reason why we are currently in a recession and why this recession is so huge.

    Glass-Steagall and the restrictions it imposed on the Traditional or Conservative Banks was done away with in 1999.

    It's important to realize that Tradional Banks are forced to operate under the light of day - they are highly regulated; they must maintain a high degree of capital; they are insured and covered by the FED; they are barred against high risk operations.

    The Shadow Banking system - has no restrictions, is allowed to operate with minimal capital, and takes the highest risks possible. This system rapidly grew during the Housing Boom and are ultimately what brought the whole mess into being.

    After Glass-Steagall was lifted in 1999 - Traditional Banks were now allowed to practice shadow banking operations WHICH WAS DEFINATELY A STEP IN THE WRONG DIRECTION. However - they remained highly regulated banks and their off shoot shadow banking during the housing boom resulted in a very small part of the resulting disaster.

    The Shadow Banks - had already been large - and this is when the Financial System developed a monumental shift - because they expanded so rapidly and became so huge they essentially took control. It was the Head of the New York Federal Reserve who brought this to light (and although he recently got a lot of bad press for not paying part of his taxes in a timely manner - he did get appointed and is now in place).

    The bottom line is - if any institution or entity operates like 'a bank' then they NOW NEED TO BE REGULATED as traditional banks. Traditional banks NO LONGER do shadow banking operations. If we expect the government to work for the betterment of the nation - then we need warmly and openly welcome them to take control of the entire banking system and bring it under control.

  2.  
  3. #26

    Default Re: How SAFE is the G Fund?

    The unelected officials run the government and THEY ARE the major part of the shadow banking system.

    Shadow banking system is here to stay. You can leave if you want, but they will stay.
    Got Beach???

  4.  
  5. #27

    Default Re: How SAFE is the G Fund?

    Quote Originally Posted by dpmp View Post
    The unelected officials run the government and THEY ARE the major part of the shadow banking system.

    Shadow banking system is here to stay. You can leave if you want, but they will stay.
    Very True

    They are somewhat 'elected' amongst themselves - a tight knit group that sticks together and has their own in place at the highest possible levels. They alone have the power to manipulate the Markets and Currencies and any particular aspect (such as 'silver').

    They pay the big money to the politicians and fully guarantee the high level goverment and admisitrative 'Financial Big Wigs' are part of their group. There is absolutely no way around it and no way to avoid it. Exposing this on any significant level will absolutely and undeniably guanantee you'll wind up in prison with no chance of ever getting out.


  6.  
  7. #28

    Join Date
    Mar 2006
    Location
    Raleigh, NC
    Posts
    3,416

    Default Re: How SAFE is the G Fund?

    Steady et. al.,

    I, for one, will not be in the 'G Fund' when the Treasury comes a-knocking for a short term loan to survive on till the CongressCritters vote themselves another credit limit hike.

    That short term loan may last a long, long time...

    Anyway, why the comment that 'if the G Fund fails than the whole world collapses'.

    Well, not really. Today, we just found out that the statement 'What's good for GM is good for Amerca' turned out to be false. Today, who cares about GM. Even the Gubmint blow heading their way is loose change rounding error on the Obama plastic.

    Is it guaranteed that the international market (I Fund) and even the American market (C/S) would be long term damaged when the Chinese and the Boomin' Oldsters stop buying Treasury Bonds? Great Depression I hit the private sector, I tend to think that Great Depression II will hit the public sector harder than the private.
    Lookin' up at the 'G Fund'!!!

  8.  
  9. Default Re: How SAFE is the G Fund?

    my head is spinning -- first and likeily to be the last post...
    is not the G fund just a 1/2 step away from putting money in a jar on the back porch?

  10.  
  11. #30

    Join Date
    Mar 2006
    Location
    Raleigh, NC
    Posts
    3,416

    Default Re: How SAFE is the G Fund?

    Quote Originally Posted by abu binat View Post
    my head is spinning -- first and likeily to be the last post...
    is not the G fund just a 1/2 step away from putting money in a jar on the back porch?
    It earns you a bit over inflation. Right now the 'G Fund' returns 3.25%.
    Money market funds are returning 0.50%
    Treasuries are 1.5%

    We are deflating at about 2.0%.
    So, the 'G Fund' is returning an inflation adjusted 5.25%.

    So, yes the 'G Fund' is for trust funders and retirees. You can consider it cash holdings. I, personnally, use it as a predator - trying to sell some equities high and then buy on a dip.

    Regardless, when the 'C Fund' takes a 37% dump in 2008 the 'G Funds' +3.75% growth is +40.75% better than the S&P.

    That is a Great Return!!!
    Lookin' up at the 'G Fund'!!!

  12.  
  13. Default Re: How SAFE is the G Fund?

    Issues: Dollar printing presses running non-stop. Treasueries becoming more difficult to sell. Other countries backing away from the dollar and us debt. Thin trading volume during "Santa Rally". Alleged insider stock selling way above "purchases". Mutual funds fully invested. Market awaiting private investor to buy stocks....

    Is G fund a safe investment, one that will keep pace with, or beat inflation, especially with the "treasurery direct" or "special" relationship?

    Thanks.

  14.  
  15. #32

    Join Date
    Apr 2005
    Posts
    14,685
    Blog Entries
    13

    Default Re: How SAFE is the G Fund?

    Quote Originally Posted by Zender67 View Post
    Issues: Dollar printing presses running non-stop. Treasueries becoming more difficult to sell. Other countries backing away from the dollar and us debt. Thin trading volume during "Santa Rally". Alleged insider stock selling way above "purchases". Mutual funds fully invested. Market awaiting private investor to buy stocks....

    Is G fund a safe investment, one that will keep pace with, or beat inflation, especially with the "treasurery direct" or "special" relationship?

    Thanks.
    If we could be confident of that, I think we'd all be rich.
    No one knows for sure.

    IF inflation begins to run hog-wild, then no, G fund dollars will shrink, and inflation will eat you up.

    But if inflation does NOT take hold, then G fund will do what it's allways done- eek out a little bit each day.

    YOU have to decide what YOU want to do with YOUR money. We can't make decisions for you.

    Good luck.

  16.  
  17. Default Re: How SAFE is the G Fund?

    Thanks James 48843.

    Is this the language from the G fund sheet that would cause the lost value with hyperinflation...

    The interest rate resets monthly and is based on the weighted average yield of all outstanding Treasury notes and bonds with 4 or more years to maturity.
    Indeed recognizing I must pick my fund selections, not a one looks good right now... Your take?

  18.  
  19. #34

    Default Re: How SAFE is the G Fund?

    "Is G fund a safe investment, one that will keep pace with, or beat inflation, especially with the "treasurery direct" or "special" relationship?"

    I believe the answer to this Q, after the first comma, is a flat "no". Safe as FDIC insured bank accounts, sure, but real inflation, coupled with the ordinary income tax to be applied, guarantees that the value will diminish with regard to today's value.

  20.  
  21. #35

    Join Date
    Apr 2005
    Posts
    14,685
    Blog Entries
    13

    Default Re: How SAFE is the G Fund?

    Quote Originally Posted by Zender67 View Post
    Thanks James 48843.

    Is this the language from the G fund sheet that would cause the lost value with hyperinflation...

    The interest rate resets monthly and is based on the weighted average yield of all outstanding Treasury notes and bonds with 4 or more years to maturity.
    Indeed recognizing I must pick my fund selections, not a one looks good right now... Your take?
    Welcome to the message board.

    Here is the best advice I can give someone just starting out-- don't move too quick--not until you are comfortable knowing the risks and rewards-

    Please read this thread first- it contains some good information:

    http://www.tsptalk.com/mb/showthread.php?t=3629

    I recommend that thread to anyone just starting out. Read it all the way to the end. It will take you a little while, but it contains good information on where to start.

    None of us here are professional money managers- so it would be wrong for one of us to try and give someone else advice to move YOUR money to the C, the S, the I or the F fund.-

    In fact, you'd need to be a licensed financial planner to do that- We're not, so we won't. We're all just feds, like you.

    YOU will have to be the one that best determines where YOU should place YOUR money.

    Thanks- welcome, and good luck.

  22.  
  23. Default Re: How SAFE is the G Fund?

    Thanks Warren and James.


  24.  
Page 3 of 4 FirstFirst 1234 LastLast

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
S&P500 (C Fund) (delayed)
How SAFE is the G Fund?
(Stockcharts.com Real-time)
DWCPF (S Fund) (delayed)
How SAFE is the G Fund?
(Stockcharts.com Real-time)
EFA (I Fund) (delayed)
How SAFE is the G Fund?
(Stockcharts.com Real-time)
BND (F Fund) (delayed)
How SAFE is the G Fund?
(Stockcharts.com Real-time)

Yahoo Finance Realtime TSP Fund Tracking Index Quotes