Hope this clears up your confusion.
Posted on 09/15/2007 2:24:18 PM PDT by AuntB
The new numbers on consumer confidence are out. They show American consumers very confident that the economy is going down the tubes.
Over in Asia and Europe, stocks plunged on fears that Americans may no longer be able to find the second jobs and recklessly borrow the money needed to buy imported stuff. Economists now freely use the "recession" word following the report that American payrolls fell in August, the first monthly decline in four years.
American consumers, in other words, are all dried up. And the discussion has begun on what kind of baloney economy kept them lubricated for so long.......
Of course, some professions thrive in tough economic times. Business should be brisk for bankruptcy lawyers. And we will need auctioneers to help unload foreclosed properties........
Today's "partying," he said, would lead to tomorrow's "hangover."
So here we are: The partygoers have downed a bottle and still they can avoid a hangover.
A recent article on the Motley Fool's British Web site offered "Five Ways to Prepare for a Recession." The prescriptions: Don't make big luxury purchases you can't pay for with cash. Build an emergency fund. Live more frugally. Reduce your debt. Find more work.
All sound advice, but consumers had better act fast — like five years ago.
(Excerpt) Read more at seattletimes.nwsource.com ...
"The problem is clear: This isn't a nation of savers. In the past two years, America's personal savings rate reached its lowest level since the Great Depression. And in comparison to other industrialized countries, the United States ranked second to last in personal savings."
http://online.wsj.com/article/SB118964627975525938.html?mod=googlenews_wsj
Salt Lake Tribune, United States - Sep 2, 2007 Americans have coped with their declining pay by going deeper in debt: The personal savings rate has been at the lowest level since the Great Depression. ...
Inland Valley Daily Bulletin, CA - Sep 12, 2007 Add to that the fact that the US has had a negative savings rate recently for the first time since the Great Depression, and it's ominous. ...
Who would be pushing for a recession right before an election? Hmmmmmm....
Seattle Times, a bastion of liberal thinking if there ever was.
The economy is made up of Americans, we can make it grow or shriknas we want. Be positive in yourself and what you do. Work hard, do your best and the economy will grow.
These stories are only about how the dimwits need a depression/disaster to win in 08. Nothing more, nothing less.
Just like clockwork. I've been predicting this one for some time.
Ah! I see it’s just another conspiracy!
Quite true and to our national detriment. The reason is our government taxes savers and subsidizes debtors. As long as that is the case I think we'll have the problem for a long time.
I’m a bit confused.
Does this mean the sky is falling? or is this a general doomination type world ending event?
Should I buy a new umbrella?
And why do you suppose Americans are not savers? Could it be because they have been indoctrinated to believe that “the government” would take care of them? Social Security? Medicare? etc, etc.
Too many Americans have been sucked into the idea that they are somehow “entitled” to be taken care of by the government. When asked who is going to pay for it, they say “the government” as if that money didn’t have to come out of someone else’s pocket somewhere. I have heard this idea expressed by someone earning over $150,000/yr. He thought he could spend every penny and then some and thought that the government would take care of him in old age. When asked where the government would get the money, he said “from the rich people” as if he were destitute on $150,000/yr.
Liberal, yes. However, the thinking part is open to debate.
A lot of belt-tightening for many and catastrophe for some.
Okay. We don’t need to save and we can just spend ‘til hell freezes over. Forget self reliance.
I’m curious. How many months could your family survive with NO household income?
How long before you’d need someone giving you what they’d bothered to save instead of spending on a bunch of junk they didn’t need in the first place?
I agree.
I’m curious. How many months could your family survive with NO household income?
How long before you’d need someone giving you what they’d bothered to save instead of spending on a bunch of junk they didn’t need in the first place?
Sure enough it hasn't been a dot-com boom.
Have you factored in 401Ks and IRAs, etc? For most Americans those savings are quite substantial.
Or are you talking about an old fashioned “savings” account with a 1% rate?
Most Americans have some sort of mutual fund activity.
I’m curious. How many months could your family survive with NO household income?
How long before you’d need someone giving you what they’d bothered to save instead of having spent it all on a bunch of junk no one needs in the first place?
We’re DOOMED!!
self-fulfilling prophecy.... or just self-parody?
*Crickets chirping*
*Lone wolf howls in the distance*
*silence*
The same people who accused Bush of "talking down the economy" in 2000.
The Liberal Mantra. Google "Froma Harrop" ... she's on a non-stop downer.
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Just like clockwork. I've been predicting this one for some time. (post 6)
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Same type of talking happened toward the end of the first term of Bush the elder. At that time they were preparing the road to the White House for the Clintonistas.
I’m a single occupant dweller type and the only thing I buy month to month are stables food stuffs.
Haven’t seen anything worth buying other than replacement jeans, undies and boots since I got this ‘puter 2 years ago.
I’m talking a natural disaster, or you fall and break your back, or whatever ends your income. Maybe a really bang up terror attack. Whatever you can get access to. How long would you last?
Hope this clears up your confusion.
You sound like me Grimmy. So how long would you last with no income?
I agree.
How long could you last with no income and only the resources you'd saved?
All people have access to their 401Ks and IRAs ... and without penalty with some types of disasters.
It’s just irresponsible to suggest that Americans don’t save. They do.
“We’re DOOMED!!”
Ain’t we though? Too bad we went with that economic model built around one Wizard of Oz guy hiding behind a curtain and working all the levers and valves all on his lonesome. Poor guy, if he nods off for just a sec, or blinks, or takes a nap, the whole kit and kaboodle comes to a crash.
Sure wish we’d gone for that other option, with the zillion independant moving parts, competing against each other and constantly working at self correcting.
Rush mentioned the latest stats show a rebound... commies... day late and dollar short.
LLS
So, SlowBoat, how about you? How long would your family get by on only the resources you’d saved, if all your income stopped?
Prices stable at now levels? (stupid assumption in a real crisis, I know..but gotta work from something) and including rent?
15 years, maybe 20 if I can control my pizza addiction.
Well then, guess I should go shopping for a sturdy umbrella. Thanks for the clarify.
Many Americans have saved, and much longer than 5 years. Plus, have set up education savings accounts for children and/or grand children. If a person at 25 saved ,for example, $500 MOL a month in a good mutual fund which has a track record return around 12%, by the time they were "into" retirement age they would be multi multi millionaires.
We have to think of the future and just not for today. Education is certainly important studies prepare for the skills needed in the "real world". Many can have a Masters, but what use is it if it not a realistic job skill. We have become a nation of wants and over needs. We have a choice. We need to take responsibility for our own actions.
A retired hotelier and his wife barricaded the Cheltenham branch manager in her office after being told that they could not withdraw £1 million savings without notice. The situation was resolved only when police officers arrived to calm the couple down. “Everyone should calm down and refrain from making simplistic comments in a very complex area which just causes unnecessary worry and concern.
This great depression mindset stems from the run on a major bank in England, the other day. They blamed interest rates in America and a threat of recession. We should see a drop in interest rates this coming week is the rumor. But even that cannot help if Americans cannot handle their own financials. Wouldn't it be beneficial to all, if kids were taught useful economic and financial classes on how to handle money when in high school. This important part of a child's education is sadly often not taught at home, because parents have, themselves, not learned how to save.
My Opinion.
We’re to the point where we are only purchasing necessities...Nothing extra unless it’s absolutely needed.
Incomes are stagnant....We just deal with it.
Good grief! How many people do you think have a 401K plan? Or an Ira? Not MOST. And I didn't suggest anything. It's a fact that that personal savings are the least since the depression and personal debt is higher than ever. Check your governments figures.
You are correct.
Americans have been saving, especially in mutual funds, since the early 80s. Even minorities have picked up the move into funds.
Froma Harrop is a Liberal.
This is an interesting article by Greenspan regarding the economy:
http://www.msnbc.msn.com/id/20781873/
Greenspan bashes Bush policies in memoir
Former Fed Chair says administration put politics before sound economics
Greenspan bashes Bush in a book he has written. There goes the election........He really rips the Republicans and rightfully so in many instances.
Most people have 401Ks and IRAs. To invest in a savings account at your local bank is FOLLY.
A lot of people are, dragnet. Unfortunately, many more will have to learn the hard way.
I would say more than half of American adults have money in stocks/mutual funds. 46% of all Americans had money in it in 2000. If you just include adults and fast forward 7 more years, I’m sure it’s much higher.
Back it up. Show me your stats. Show me that more Americans have 401Ks and Ira than don't.
Tax relief has spurred economic growth averaging 3% annually. With more than half of all Americans owning stock, many families and retirees will benefit as the changes in capital gains and dividends taxes drop to zero in 2008 for those in the lowest income brackets.
Credit Card (Instant gratification ) driven economy had to end sometime
Here’s some:
42 million employees are saving for retirement through company-sponsored plans; Americans have more than $1.9 trillion invested in 401(k) plans ...
www.psca.org/starting.html
42 million. And there are how many people in this country?
Vacation homes are for good times...
Interesting:
“With more people working long hours, the average median income per household increased. But in order for most households to achieve this, both husband and wife had to work full-time. What’s worse, individual incomes decreased. Women’s earnings dropped 1.2 percent, with the median income at $32,500. Even though men typically make more, they too saw a decrease in earnings.
Robert Greenstein from the Center of Budget and Policy Control commented, “Working Americans in general are kind of treading water, they’re not really making that much progress.”
But those in the workforce making a lot of progress are CEOs. One survey shows they make 364 times more than average workers. Greenstein says these recent numbers show an uneven distribution of economic growth.
“Millions of middle and lower income working families have not gained and have not shared in the benefits of this economic recovery,” he said.
http://news14.com/content/business/586760/census—more-americans-working-full-time/Default.aspx
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