Q. My concern about the impact of a federal debt default on TSP accounts is that my account would be subject to bankruptcy as a federal government asset, and therefore be reduced to something like $0.10 on the dollar. Are the funds mine or those of the federal government?
Browsing: U.S. government default
Q. Both the president and OMB nominee have floated the idea of defaulting on national debt in order to settle it at a lower cost. What impact would there be on TSP accounts if debt were defaulted upon?
In case you haven’t heard, Wells Fargo was recently caught cheating a large number of its customers out of large amount of their money. Here are some of the problems with financial institutions like Wells Fargo. For the sake of brevity, I’ll skip the story of how we got to our current circumstance and focus on the current situation.
Q. Is it possible that folks’ G Fund in the TSP could literally dissolve/evaporate if the U.S. government “defaults” next week? I believe it’s possible, and, in a game of chicken, no one would care if federal employees took a hit like this. In fact, some may take relish in the political opportunity to blame the opposition for gain.