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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (30292)	10/5/1998 9:45:00 AM
From: James F. Hopkins	Read Replies (1) \| Respond to of 94695

Thanx Blue; No I didn't know about FERS, the results of that if you look at the dynamics , or the physics of it, also creates a form of communism. This will likely be denied by the ones who advocate it, but it don't change the fact. Communism by and for the rich seems to be A OK as long as Wall Street gets their hands on the tax dollars. Maybe some day the Government will own all the stocks, or at least the biggest majority, it all seems to be heading towards some program, like a loop. 10 Tax the people 20 Buy Wall street 30 Go to 10 I see it happening not just in our market but in other markets as well, seems the great capitalist's are not to good to embrace it, as long as they get to run it. That it creates excess pools of capital by the rules of some arbitrary weighting established by a publishing company, it's ironic. Eventually it creates monopolies that do not have to have earnings to remain a monopoly, as you can't sell them off without the system breaking down, when the government gets enough invested it can control the vote and appoint the directors of the companies involved. If this is the game plan why waist time doing it piece meal, and why go to the trouble of taxing people anyway. Who set up this FERS program ? --------------- As for MSFT making money, yes they have a P/E of about 67 last I looked. That this indexing creates the Highest P/Es in the most capitalized companies should be obvious to any one that looks. ------------------------- Jim

To: Ilaine who wrote (30292)	10/5/1998 10:13:00 AM
From: Terry Whitman	Read Replies (1) \| Respond to of 94695

CB, You're a little off on FERS. Allow me to help set the record straight: Federal Employees are currently under two different retirement systems. Older employees (Pre 1986) are under the Civil Service Retirement system (CSRS). Younger employees are under FERS. CSRS employees get a basic pension when they retire. They are also allowed to invest up to 10% of their pay in the tax deferred TSP (Thrift Savings Plan). There is no match on their contributions. They do not pay social security taxes, and they do not receive benefits. FERS employees have 1% of their pay funded by the gov't in the TSP. They can also put up to 10% of their pay in the TSP. The gov't encourages this by matching the first 5%. They receive a much smaller pension, which is supposedly made up for by their TSP and social security. Either group can allocate the TSP between three funds: C, F, and G. The C fund is basically an index fund based on the S&P 500. The F fund is a bond index fund, and the G fund is gov't securities. They can change their allocations 12 times per year. Federal employees are without a doubt major participants in the current stock market bubble, with their C fund holdings, but it is not that large in comparison to the whole. Regards, TW