Posted on 01/09/2018 8:07:13 AM PST by SeekAndFind
Excellent questions:
“When a report like this was released a few years ago, the financial guy on the radio said they use solely savings accounts to measure savings, not investments.”
“Wonder if this study used IRAs or just bank accounts. Of course debt to assets will be high if only bank accounts are used. My grandparents invested in CDs and put everything else in the bank. People don’t do that anymore, you save for retirement in an IRA.”
Similar bs was posted during GW’s recovery, and the lefty economists said that we could not count on our IRA’s and 401
k’s as assets. It is doubtful that 529 College education plans are counted as assets.
There are dark clouds re college debt for worthless Instant Unemployment Degrees. Adults living from paycheck to paycheck with zero cash reserve let alone having 6 months of pay in a savings acct. in case they lose their jobs.
Or they have one or two new vehicles with massive debt or large monthly rental payments
Also, in California, we were asking did they count illegals, er excuse me undocumented American families in the mix. The illegals bring in zero assets and most have zero assets at anytime after they come here. Any money they have left over,gets sent back to Mexico.
I like Mish but question this analysis. I think it would be more useful if it was broken down into age categories. Lumping people who are 20-30 years old into the mix skews the net worth figure downward. Few young people today have had time to build a positive net worth, especially if they are carrying college debt. And yet, those carrying that debt have good prospects of building wealth as they pay off that debt.
For example, if I look at my net worth as it compares to all households, I’m at noticeably higher percentile rating than if I look at net worth of households with an age of 55+. (I’m 68.)
The real economy as large as ours moves much more slowly than the financial markets.
The corrosive effects of 0bama will be felt for some time.
Let us not forget how close to the abyss we were a year and a half ago.
People acquire debt for different reasons. Truly, there is ‘good debt’ (for investment) and ‘bad debt’ (to pay bills).
I would be very concerned about the Feds role in inflating the Dow to 25K considering how much PE ratios have grown. It isn’t 25K based on value and earnings...
You are correct. Sadly, if you distill it down to its essence, the highest pursuit and goal of many today is to seek out and acquire as many orgasms with another person as possible. That seems to be the lifelong focus and pursuit of so many. And in this wake is untold brokenness, financial, and personal. That people don’t grasp this is somewhat remarkable.
Dave Ramsey has his work cut out for him. You can’t get ahead if the banks own parts of your paycheck - period.
How can you have an accurate “Median Family Net Worth” without an accurate definition of “Family”?
save
Debt is slavery. Always avoid it.
Answered in post 16 - take a look at the chart. They seem to have everything covered.
Not for long if the Dems ever return to power and confiscate all 401(K) holdings.
Rubbish. If only we had a 'keynesian' in charge. At least we would have a balanced budget. The R's and D's can only 'run' our economy on debt.
You’re absolutely right. Our culture has reduced “family” to nothing more than a synonym for “household.”
(See also “father” and “sperm donor”, “marriage” and “certified shackup”, etc.)
Bookmark
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