Tax Pros Investors: Bankrupt GM Mirrors Bankrupt USA

Bankrupt GM Equals Bankrupt USA

General Motors (GM) recent bankruptcy is a mirror on the consumer debt based US economy. It's over. In our new global economy with increasing volatility, consumer debt is not a sustainable driver for economic growth.

GM bankruptcy will have far reaching implications for the equity and credit (debt) markets. The overall impact is negative. Many GM suppliers will shut down, or scale back operations. The ripple effect will reduce overall US GDP (gross domestic product). The upcoming sell-off in US Equities will severely hurt US Pension Funds. It may even lead to a "Pension Fund Crisis" that will require government intervention, on a massive scale.

We expect the intervention (bailout) to take the shape of a US Government - Guaranteed Retirement Account (GRA). Private/Corporate and Municipal Pension Funds that are underfunded or near/in default can transfer assets to the new GRA program. Pensioners will get a "guarantee" on the scheduled amount (value) of their pension, retirement account. the big question is if the retirement income (payout) will be indexed to CPI to protect against inflation.

We advise our clients to take specific steps to take control of pension assets and protect their retirement income streams. Register today and contact your Millennium Lyon - Investment Advisor for more details.

You should implement these strategies in your portfolio by June 30th, 2009 for maximum benefit. To read our other recommendations visit us online or call your Millennium Lyon - Investment Advisor today.