The party's over for American consumers

Seattle Times ^ | Sept. 15, 2007 | Froma Harrop

[Caipirabob]

Well, the solution is clear. To save more money, we need more tax cuts. Democrats in the House and Senate? We're waiting for the right action here.

*Crickets chirping*

*Lone wolf howls in the distance*

*silence*

[Fresh Wind]

Who would be pushing for a recession right before an election? Hmmmmmm....

The same people who accused Bush of "talking down the economy" in 2000.

[BunnySlippers]

We’re DOOMED!!

The Liberal Mantra. Google "Froma Harrop" ... she's on a non-stop downer.

[OneHun]

Who would be pushing for a recession right before an election? Hmmmmmm.... (post 2)

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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.

 

[Grimmy]

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.

[AuntB]

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?

[SlowBoat407]

Hope this clears up your confusion.

[AuntB]

You sound like me Grimmy. So how long would you last with no income?

[AuntB]

To save more money, we need more tax cuts. Democrats in the House and Senate?

I agree.

How long could you last with no income and only the resources you'd saved?

[BunnySlippers]

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.

[Grimmy]

“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.

[LibLieSlayer]

Rush mentioned the latest stats show a rebound... commies... day late and dollar short.

LLS

[AuntB]

So, SlowBoat, how about you? How long would your family get by on only the resources you’d saved, if all your income stopped?

[Grimmy]

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.

[Grimmy]

Well then, guess I should go shopping for a sturdy umbrella. Thanks for the clarify.

[fight_truth_decay]

but consumers had better act fast — like five years ago

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.

[dragnet2]

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.

[AuntB]

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.

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.

[BunnySlippers]

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.

[texastoo]

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.