So what are everyones thoughts on the tapering having to occur because it is wrecking the insurance companies,  pension and retirement funds long term prospects and base of bond investments which are needed to produce the income to cover their ongoing commitments.

Sure the fed would like to continue the QE unabated but they know if they continue they will explode all the pension and retirement funds because they are starving them from any type of return. It was also interesting to hear that the pain is gradually ramped up over say 5 years as rates go down but when the tapering finally slows and stops and the rates creep up the recovery is also slowly made over about another 5 years.

Denninger's video covered this in part at around 18:55 in for a better explanation.

http://www.youtube.com/watch?v=c4_rCtvlQpg

I found this a very interesting observation and while I had heard about it before I always wondered how these funds were still able to claim that long term they were getting 8% returns. He has been saying for quite some time the public pensions are in a heap of trouble as they have made promises that simply cannot be met. Lots of state laws were passed trying to guarantee that these pensions HAD to be paid and folks were "promised" this. With the unraveling of Detroit and a couple of those legal decisions clearly stating the pensions and retirements were not protected from write downs has perhaps torn the lid off how bad of shape all these funds really are in.

This 8% always seemed to be the number tossed about and would be necessary for long term retirement fund solvency based on their proposes payout schedules to retirees. 

21:45 to 23:40 explains how the bite on bond rates is hurting.

I still eventually anticipate some sort or form of 401 K /IRA seizures or at the very least mandatory investing into govt. bonds. After all the full faith and credit argument will be trotted out to keep the sheeple appeased and calmed.When that is not enough look for a wealth tax or bail in where they just swipe a percentage of all your bank accounts. These are the last big pots of money yet to be plundered.