Posted on 01/23/2020 11:06:08 AM PST by SeekAndFind
We better hope that the U.S. economy holds together in 2020, because if there is any sort of major economic crisis much of the country is going to be broke almost immediately. Today, close to half of all Americans are living on the edge financially. For many, it is out of necessity, but for others it is a conscious choice. Way too many people out there see no need to build up a substantial financial cushion because they have a tremendous amount of faith in the system. They don’t think that things will ever get too bad in this country, and so there is no urgency to put funds away for a rainy day. But even if authorities could somehow prevent an economic downturn from ever happening again, individual emergencies are taking place all around us on a constant basis. Cars break down, people get sick, and accidents happen. Unfortunately, most Americans are completely unprepared for some sort of an emergency to strike.
In fact, a brand new survey has discovered that just 41 percent of Americans could cover a $1,000 emergency expense using their current savings…
Bankrate’s January Financial Security Index survey reveals that just four in 10 U.S. adults (41 percent) would cover the cost of a $1,000 car repair or emergency room visit using savings. The findings echo what previous Bankrate studies and others — including the Federal Reserve and the Pew Charitable Trusts — have found about Americans’ lack of rainy-day savings.
So where would everyone else get the money for an emergency?
Well, most of them would either borrow the money or get it from a relative.
And usually an emergency costs a lot more than $1,000. Here is more from the Bankrate survey…
Emergencies often aren’t cheap. Among survey respondents who said they or their family members dealt with an unexpected expense in the past 12 months, the median amount of the largest expense was $1,750.
Three in 10 adults (29 percent) said they or their family members spent at least $5,000 in the past year to cover an unanticipated cost.
The bottom line is that most of the country is living paycheck to paycheck, and most Americans are just one small step away from financial disaster.
Back in 2008, millions of Americans suddenly lost their jobs, and because so many of them were living on the edge financially a lot of them suddenly couldn’t pay their mortgages.
You would think that we would have learned something from that very painful experience, but we didn’t.
So we better hope that the U.S. economy remains relatively stable, because a serious downturn would be very ugly.
Unfortunately, an increasing number of experts are warning that our luck is about to run out. In fact, the head of the IMF recently warned that we could potentially be facing another “Great Depression”…
The head of the International Monetary Fund has warned that the global economy risks a return of the Great Depression, driven by inequality and financial sector instability.
Speaking at the Peterson Institute of International Economics in Washington, Kristalina Georgieva said new IMF research, which compares the current economy to the “roaring 1920s” that culminated in the great market crash of 1929, revealed that a similar trend was already under way.
That certainly doesn’t sound good at all.
Here in the United States, most people have been choosing to ignore all the signs that the economy is starting to really slow down.
But as stores and businesses continue to close down all over the nation, it is going to become very difficult to ignore all of the empty buildings.
For example, Macy’s just announced that they will be closing nearly 30 stores…
Macy’s is closing roughly more than two dozen stores as troubles mount for the storied retailer.
The company confirmed to CNN Business that it’s shuttering 28 Macy’s locations and one Bloomingdale’s location in the coming months. Closures affect locations in several states, including Florida, California and Georgia, according to lists compiled from various media reports.
And one of the most prominent mall retailers in the entire country has just announced that they will be closing 91 stores…
Fashion retailer Express plans to close 91 stores as part of a “fleet rationalization” after a sales slump during the holidays.
The move comes amid a rash of store closures following the holiday shopping season.
Of course I could go on and on all day. Here are just a couple more examples of major retailers that are closing down stores…
Bed Bath & Beyond is closing 60 locations, with the list being revealed Tuesday. And Schurman Retail Group plans to close its Papyrus and American Greetings stores, totaling about 254 locations, within the next four to six weeks.
But despite all of the evidence to the contrary, the irrational optimists would still have us believe that America has entered a new era of tremendous economic prosperity.
I actually wish that was true.
Sadly, decades of exceedingly bad decisions are catching up with us in a major way, and instead of changing course we continue to steamroll toward a date with destiny.
Right now I am going to share with you the number one piece of advice that I give to everyone who asks about preparing for the great storm that is ahead.
Build up a financial cushion.
When things get bad, you are going to need money.
I know that sounds exceedingly simple, but obviously most of the country is choosing not to do this.
Instead, most of the country is surviving from month to month with barely any money in their bank accounts, and so when disaster strikes they are going to be looking for someone else to rescue them.
We have had more than a decade since the crisis of 2008 to prepare for the next one, but most people are acting as if the next one will never arrive.
Unfortunately, the truth is that the next crisis has already started, and businesses all over the nation are going bankrupt.
But most Americans won’t realize what is happening until things really start getting out of hand, and by then it will be far too late to make any sort of preparations.
And guess who pays for their stupidity?
Maybe us savers are the dumb ones, after all.
My liberal friend brings this up a lot. BUT last year the figure he used was $400.00. Thank you Mr. Trump.
Interesting. Only a year, or two ago the same exact headline read "Not Ready For Economic Collapse: Only 41 Percent Of Americans Have $400.00 To Cover An Emergency
My wife’s a long term dave ramsey fan (and I have become one as well), and all that that implies.
he’s on youtube now.
When have they ever had more?
That’s OK. They all have at least five credit cards. That will carry them through.
A $1,000.00 in the bank....3 cars, a $250,000 house, 4 Smart TVs, 5 I phones.
Yup....people are worried.
I thought the answer to this question was to trade in the $40 Hyundai Accent with 4 years of payments remaining, and instead finance an $80000 Ford F-250 quad cab at 8.9% APR for a term of 270 months. I better go back to skuul and get my masters degree for $180K so I can be smart, too.
Haven’t had a Savings account since the 60s.
It used to be Two Thousand Dollars. Now it's $1,000?
Maybe instead of wasting money on car payments, electronic gadgetry and tattoos, putting some $ away on a disciplined, regular basis would alleviate these concerns... but Americans, especially young ones, don’t have any clue about financial issues.
Kids should have financial courses in school. I think automatic signups for young people for 401/k or IRA funds started early. If Congress was worth a spit they could allocate a small % of Social Security revenues for say Stock index funds for some compounding growth since they hijacked SS years ago and now it’s paid from the yearly budget.
The only examples of calamities they cite are retail stores who have long outlived their usefullness as Amazon and its online competitors make it much easier for people to go shopping from home.
Retail closings are tied to the fact that the brick and mortar stores cannot compete with the internet. I dont think this will lead to a financial collapse.
Lots of doom and gloom in that article... of course, Snyder is one of the Alex Jones’ cronies, so it follows.
So Americans have 600 more dollars than last year? Ty potus
Hisotry courses detailing these past problems wouldmgo a long way too, but i hear nowadays american schools dont teach our own history anymore.
I’d almost be afraid if they started up again, as to how libtard socialist biased the textbooks would be.
An economic collapse is coming- and it is my belief that this whole climate scam will be the catalyst to ensure that it does- climate Taxes, fines, and added fees and business regulations will be so severe that people will have to turn to government help to find relief- just to buy oil, gasoline, heating fuel, food even- and the government will be all too willing to give people the help they need just to survive- for a price- the mark of the beast-
They will say “Come to (fill in the blank with some city, or several cities under their control), We have all the supplies you need to survive, we have electricity, fuel, plenty of food and potable water- all you have to do is travel here, and everything will be available to you”
Think about it- a father and mother, facing terrible cold, no food, no electricity because they can’t afford it- their children slowly starving to death ,nearly freezing to death in winters- the agony they must face over the decision to stay, and risk death for their children and themselves,s or traveling to the ‘city of promise’- little do they realize however, in order o get that gas, electricity, fuel, heating fuel, water and food, clothing etc- they will have to take the mark of the beast and worship him-
It’s gonna get ugly- Parents will face a terrible decision-
But i believe climate change fines, fees, regulations and taxes will be what cripples the world and pounds people into submission to a one world government
Who will need cash. Iodine pills, a bowie knife and a whole lot of 5.56.
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