Saturday, October 27, 2012

What part of "we are broke" don't you understand...

Consumers went bust 4 or 5 years ago and haven't fully recovered. Housing is improving and credit card debt has fallen back to much better levels in our households.

Of course, I posted on this several years ago and I'm still right.


But slowly over the next 6 months to a year, BOOM. The next president will of course get credit for it but it has nothing to do with the politicians other than they propped up the gangsters On Wall Street and the banks that got us into this mess.

Guess what? The next boom will be bigger than last and the next bust will be really ugly. How do I know? Ask yourself, why would anyone change their ways if the last time they committed these crimes you paid the bill and they kept the billions?

Let's not forget who owns our politicians. It ain't me, baby!

f | Decline of the Empire

Credit Donkey carried out a survey of Americans in September, finding that nearly half have no emergency savings. Close to half have no cash savings and are living on the edge of financial disaster, according to a recent survey. While 59% of respondents reported having more than $500 in savings, the other 41% do not have a cash safety net. Well, no surprise there, although there is a definitely possibility that many of these Americans do indeed have over $500 available in case of an emergency—they have 573 dollars and 49 cents. Of course, if you lose your job, or your car breaks down in a serious way, or you have a medical emergency, and you don't have insurance or you've got a high deductible, you are still screwed. $573.49 doesn't go quite as far as it used to But Credit Donkey emphasizes that it's not what you may think. It’s not what you may think: this 41% is made up not only of people living at or below the poverty line. They are also dual-income earners with nice homes, nice cars, nice toys, a 401K retirement savings plan, big mortgages. and big credit card bills. But if they ever get into a bind and need some quick cash — say, because of a car breakdown or an unexpected doctor visit — they don’t have it.

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