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.
Headline:
TRUMP BOOSTS EMERGENCY EXPENSE FUNDS 150% IN JUST ONE YEAR!
Was is it? Hyper Inflation? Or depression?
If Hyper Inflation, a grand wont buy you anything. I dont see it as a depression.
One thing I do see though is a hell of a lot of violence on the streets. Like the pension riots and 1930s crime waves.
OK, I’ll bite...
What are you saying here...please clarify.
don’t forget- the left are disarming everyone- and i think that plays a huge role in a one world government taking over- Nope- noone will accept it willingly- but people will be freezing to death, starving to death— people living in cites will not be able to grow their own food- or burn wood to keep warm- They won’t have a choice about the electricity- sure, they’ll be ticked, but they will be forced to accept it- the people won’t be able to force the electric companies to keep the power on especially when they can’t pay for it- It will get ugly- people will be desperate- there will be anarchy- for sure- however- with a government gone rogue- punishment will be swift and brutal- it’s all about power and control-
And don’t forget- the false prophet will be Satanically inspired and will be a massive deceiver- He will have super-human ability to deceive the masses- God will allow this- and even warns of it- like you said- it will all be a lie but many will fall for the lie
The bible talks about a ‘strong delusion’ taking over the world- so that lies become the truth and truth becomes criminal- (We’re practically there now- science and biological fact no longer matters- only how someone FEELS about themselves matters- Anyone that doesn’t support that is either arrested or fiend- (Deblasio made it against the law to call someone what they truly are- if you don’t refer to them as their deluded demands dictate- you will be arrested or fined- and charged with hate crimes)
We’re on a very slippery slope- fascists are taking over-
Ping
“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.”
BS. Majority of those 40% are not wasting money friviously. 40-50% of the population are living paycheck to paycheck for various reasons.. offshoring of jobs for starters. Wait until automation and AI really kick and 4 million well paid truck driving jobs go poof for starters.
Hahahahahahahahahahahahahahahahaha!!!!!!!!!!!
These days if you don’t have 5 or 6 grand hanging around you’re courting disaster. An automotive centered calamity alone could screw you good. 1000.00 might serve if you don’t owe and have great credit you can turn to in a pinch.
The democrat party solution is to raise taxes even more from those that earned the money which in turn will cause more companies to close, more people to lose jobs and more people to lose their homs etc.
The democrat party solution is to raise taxes even more again and again.
They are NOT disarming *everyone*, altho it is true they are trying to find ways to do so in some areas.
Not just citizens, but sheriffs, are resisting them and there are more of the resistors than the tyrants. Going on to *ban* criticism of government officials is adding insult to injury, as the 1stA is specifically for political speech.
You think the fascists have so much power they can and will succeed in starving people, denying them energy and eliminating transport and jobs across multiple industries?
We still have courts. We still have law enforcement that honors the Constitution, we still have hundreds of millions of people who will not bow or succumb to tyrants.
We just had tens of thousands demonstrate peacefully in VA. People are jamming the streets in France and Hong Kong and Iran, There is strong global pushback against global tyranny. UK is leaving the EU and the tyrants there did not get their way.
I think you are panicking way too early and without any confidence in your fellow Americans. Fascists are trying to take over. I doubt they succeed.
You think 25% of the US population can empower these evil ahoes? And they will remain supportive as the results impact themselves? I don’t even think God allows this to happens and people sure as he!! won’t. There aren’t enough points of pressure, enough gun toters or even enough armaments to allow a fraction to take over from the majority....not anywhere.
The Swedish government just collapsed over the failure of their national health care system. That will happen x1000 around the world if enough countries get to the same point Sweden did and when it impacts food and utilities and basic quality of life.
God uses us all and evil cannot compete with truth, light and goodness. I doubt there are even 10% who will continue to support this last gasp of fascism, especially as it manifests itself in extreme privation and oppression.
I believe we have been in a war for a long time and I also believe we are winning. If and when some government decides to nuke its own territory and people, that will wake up the deepest sleepers and all bets will be off.
That is the only play left to the global tyrants and they will reap the whirlwind.
Yup, you can’t have assets until your debts are paid off.
The best strategy here is to avoid debt in the first place.
You need to invest in stocks, also have several credit cards around to use for emergency’s.
Hard to do, but you’ll be glad to have done it: save every single bill for 3 months. The essentials. Try to keep that money, in cold hard cash for 30 days. For us its only natural gas, water, entergy, food, etc. The essentials. Next save 3 months of cash equivalents (cd, money market fund, checking account,etc). Pretend you don’t have it. Never touch it.
I’m an ardent believe in saving, and I keep trying, but I find that the emergencies come up just as I have a few bucks in the bank. So I pay for the emergencies and try to start over. I’ve found it difficult to really get ahead in the savings department...I do have retirement savings in a 401K, but week to week, month to month savings is difficult.
There's also the fact that the US has an absurd amount of retail square footage per person, way higher than anywhere else in the world. There's 23 square feet of store for every man, woman, and child in America. Canada has 16 feet and Australia has 11. Europe is more like 5, and yet there doesn't seem to be any lack of places to shop there. There's just no reason to have that much retail space competing for the number of customers and the overhead eventually kills you.
As far as those Macy's closures, there's the fact that Federated Stores went on a buying spree in the 90s, snapping up competitors and rebranding them as Macy's, only to find that they now had 5 Macy's in the same town competing only against themselves.
I was a state employee, know about professional poverty.
Oh? So the fact the average credit card debt per U.S. household was $8,500 Is an illusion?
My wife and I are in our mid 60s. Between the two of us, we have a $5,700+ monthly retirement income after health insurance and income taxes.
Only monthly expenses are a car payment of $400 for another 2 years, utilities of about $200, homeowners insurance of about $150, phone-cable-internet of about $200, cell phone usage under $30, car insurance on on two cars for another $200. That’s it.
Retirement investments of about $400,000 and $40,000 in various checking and savings accounts.
We are not rich, but don’t spend money on stupid stuff.
“Oh? So the fact the average credit card debt per U.S. household was $8,500 Is an illusion?”
What are the purchases? About 45% of the country is doing great. The other 40-45% are treading water. 10% are floating back and forth.
I see it in my career with employee benefits. Owners, managers, key and technical employees are doing great. Rank and file employees not so great. Stagnant wages(Though better under Trump), loss of benefits on and on.
My frien works flor a major soap company. Not that long ago $18 an hour to start, full benefits. A few years ago they stopped that and now hire employees though a temp agency $11 hr, no benefits and 29 hrs per week so don’t have to pay health insurance.
I see more and more of this happening every day in my line of work.
A race to the bottom. I’ve read plenty on here whose jobs were outsourced to HB-1 for a 30% of their wages
Talk with any doctors billing office and see how people are paying their $8000 deductible medical cost-it aint cash or checks.
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