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.
Not to worry, the 59% who saved and have more will be forced to share the wealth.
while the possible scenario is a ways off- and ism ore about the ‘final financial collapse’- we are just one or two democrat presidents away I believe from this nightmare scenario- They will plunge us into economic dire straights with all this climate crap- at first it will start out as not too bad- small fees- small fines- but will grow very quickly once the ball gets rolling- an anyone complaining will be excoriated at ‘anti-science’ ‘anti-planet’ etc- Then they’ll really lower the boom- cripple everyone financially- make them totally dependent on gov- (Democrats have been trying to get everyone on ‘welfare for all’ for a long time now- free everything- the government will take care of you)
Just write down all the rich FR folk’s addresses... They let us know on here how prepared they are...
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”
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All the above will likely be a lie.
They will actually have rolling or long term blackouts, MREs because they will lack the raw materials and power to import food and keep it cold, lack of power to pump available fuel and a shortage of fuel due to their green policies, and dubious water due to a lack of power/chemicals to keep it safe, not to mention water shortfalls due to various eco laws. Everything will be severely rationed and based on some sort of vote and labor exchange. Corruption will make it all worse.
Those blue cities do not even have housing and medical treatment available for the homeless street encampments.
Very few people will go there.
Snyder is a gloom monger.
That said, for many, cutting cable, Starbucks and eating out would save them a ton of money every month.
For many of us, our problem isn’t that we spend too much.
It’s that we don’t earn very much. :-(
No one needs money saved when one is on welfare.
Their money is coming from YOU!
Same 50% who don’t pay any federal income taxes.
I’ve cut a few minor indulgences and don’t miss them at all.
I look at eliminating more out of what little there is.
[[All the above will likely be a lie.]]
yep because the Father Of Lies will be running the show at this point- and many people will fall for it out of fear for their family’s survival-
[[Snyder is a gloom monger.]]
Oh I’m sure he is- my scenario is the end times- snyder is glooming and dooming present economy pre tribulaiton- my scenario is during the trib- and it will be doom and gloom during that time- I just think the way they wil lget us there will be through the colossal scam of climate change-
Why would I need money if I have a pistol? (just joking)
If you start saving in your early 20s, even if it’s just a hundred dollars a month, by the time you’re 50, you’re pretty much set for retirement.
Compound Interest is indeed the “8th Wonder of the World”
I don’t think one’s ability to cover $1000 really has anything to do with a full collapse. A major, 20% unemployment type collapse is gonna burn through $1000 pretty quick.
I was just referencing “The Shelter” Twilight Zone episode, about how those who didn’t prepare were demanding the one family that did prepare to let them into their shelter.
I don’t think economic collapse will occur with Trump as President. After that if a whacked out socialist or communist then a possible Atlas Shrugging is possible. With a high # of morons and leftist hacks in the populace it’s a scary possibility.
I just did my solidly middle class taxes. I'm paying the state $2 more and getting less than $100 back from Trump and company. No windfalls here.
The poorest people are now the most likely to be obese, and almost everyone is generally bigger and heavier. So I guess if everything really craps out many will have the luxury of living off their tremendous fat reserves for many months if they can’t buy food.
Freegards
Agreed- He doesn’t seem in a hurry to sign onto any climate regulations but you can bet a democrat will- AND, they will likely give away our sovereignty in the process so that we are regulated by the UN in regards to climate rules enforcement
Next recession folks will be selling Apples on the streets.
imacs, iphones, Macbooks...
...through the colossal scam of climate change-
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“You say you want a revolution.....”
I do not think those in the Northern Hemisphere will forego heat in winter, nor will those in the south forego air conditioning.
No one is going to accept starvation.
No one is going to accept less electrical power, reduced potable water, global economic collapse in exchange for empty promises from tyrants.
I have no idea when the End Times arrive. It’s pretty clear _how_ they come about, but nothing says the process must be quietly accepted by the globalists’ slaves.
They do not have the leverage they assume.
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