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soulflower

Americans owe more, save less, and are poorer than in decades

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Axios: Americans owe more, save less, and are poorer than in decades

A greater share of Americans have more debt than money in the bank than at any point since 1962, according to Deutsche Bank economist Torsten Slok. And, in a note to clients yesterday, Slok said that, despite record stock market wealth and home price levels just shy of housing-bubble highs, Americans are poorer than at any point in nearly a quarter century.

Why it matters: The data suggest that the third-longest economic expansion in history, and the lowest jobless rate in 17 years, has benefitted an exceedingly thin slice of the American public.

https://www.axios.com/americans-owe-more-save-less-and-are-poorer-than-in-decades-1515262277-9a755b0c-edd1-4abe-a9e9-1f7d1b632978.html

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Bankers love debt slaves. And we have raised a generation that thinks nothing of borrowing whether they can afford or not. Why wouldn't they? The government has provided them with this example.

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Pretty much my entire adult life has provided me no incentive to save. Interest rates offered for CDs and savings accounts are a joke. The government wants you to spend or invest. Save? No.

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This is why most people shrug their shoulders when republicans talk about corporate tax cuts or the stock market...

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40 minutes ago, soulflower said:

Axios: Americans owe more, save less, and are poorer than in decades

A greater share of Americans have more debt than money in the bank than at any point since 1962, according to Deutsche Bank economist Torsten Slok. And, in a note to clients yesterday, Slok said that, despite record stock market wealth and home price levels just shy of housing-bubble highs, Americans are poorer than at any point in nearly a quarter century.

Why it matters: The data suggest that the third-longest economic expansion in history, and the lowest jobless rate in 17 years, has benefitted an exceedingly thin slice of the American public.

https://www.axios.com/americans-owe-more-save-less-and-are-poorer-than-in-decades-1515262277-9a755b0c-edd1-4abe-a9e9-1f7d1b632978.html

But they buy a new 1000$ smart phone every year

Proving you can fix stupid

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8 minutes ago, soulflower said:

This is why most people shrug their shoulders when republicans talk about corporate tax cuts or the stock market...

It is also why they scratched their heads when they were told the economy was doing great when wall street got bailed out and main street got foreclosed on.   

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43 minutes ago, Jimmy Jazz said:

Pretty much my entire adult life has provided me no incentive to save. Interest rates offered for CDs and savings accounts are a joke. The government wants you to spend or invest. Save? No.

I agree. It's particularly hard on risk-intolerate folks on a fixed income. A mix of savings and investment, tailored for your personal risk tolerance and age, is appropriate. But you know what we don't teach kids in high school and ought to? Investing. Among other things.

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25 minutes ago, Rocketwolf said:

But they buy a new 1000$ smart phone every year

Proving you can fix stupid

And a new $30K car every 4 years

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25 minutes ago, Eastside Terp said:

Yep, 8 years of Obama and here we are ....

It's Obama's fault that people are fiscally irresponsible?

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52 minutes ago, Jimmy Jazz said:

Pretty much my entire adult life has provided me no incentive to save. Interest rates offered for CDs and savings accounts are a joke. The government wants you to spend or invest. Save? No.

Hopefully folks are at least maxing out their 401s and hsa.....

Tax free investments are decent vehicles are Roth iras......

Most folks just live beyond their means and expect the government will be their to bail them out  or subsidize their overspending .....

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Posted (edited)

14 minutes ago, Evil Yoda said:

I agree. It's particularly hard on risk-intolerate folks on a fixed income. A mix of savings and investment, tailored for your personal risk tolerance and age, is appropriate. But you know what we don't teach kids in high school and ought to? Investing. Among other things.

That's why they have parents, supposedly. Schools don't have the time or resources to teach everything in life. 

Edited by bmore_ken

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Posted (edited)

9 minutes ago, bmore_ken said:

And a new $30K car every 4 years

If you have a job that requires commuting because you can’t afford to live close to your job, a car is a necessity  not a luxury.  And new cars require less maintenance which is covered by a warranty anyway. And don’t say public transportation is an alternative.  Large number of metro areas have spotty public transport outside the inner urban core.

Edited by kandace

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The 'victim-blaming' shiznit runs deep in teh betaverse... and occasionally leaks out.

It's never ALWAYS anything;  it's never always the economy, the weather, my arthritis, my sloth, my sick kids, etc...

But it's ALWAYS something.

 

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3 minutes ago, kandace said:

If you have a job that requires commuting because you can’t afford to live close to your job, a car is a ncessity, not a luxury.  And new cars require less maintenance which is covered by a warranty anyway. And don’t say public transportation is an alternative.  Large number of metro areas have spotty public transport outside the inner urban core.

A new car can last you at least 15 years with proper maintenance. You don't need an upgrade every 3 or 4 years years.

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2 minutes ago, bmore_ken said:

A new car can last you at least 15 years with proper maintenance. You don't need an upgrade every 3 or 4 years years.

Agreed, 10 years is the average baseline for any halfway decent car .....

Shoot, i live for the 10 years I get out of a car after its paid off.....

That's family vacation money there......

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31 minutes ago, SemiAuto said:

It is also why they scratched their heads when they were told the economy was doing great when wall street got bailed out and main street got foreclosed on.   

I agree.

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41 minutes ago, Eastside Terp said:

Yep, 8 years of Obama and here we are ....

According to the graph in the linked article, the trend of zero or negative non-home wealth started in 2001, that Obama was president longer than anyone knew.  :rolleyes:

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20 minutes ago, bmore_ken said:

That's why they have parents, supposedly. Schools don't have the time or resources to teach everything in life. 

Parents can't teach kids everything; some parents have no idea about these topics, either. We have schools to teach children those things we decide they need to know that we're not sure parents can teach them (or, that we're sure some parents can't or won't teach them).

Some other things I regard as more useful than calculus or AP physics (both of which I took) in high school: When do I need a doctor, and when don't I? The basics of car maintenance and repair including how to talk to mechanics, and Why do I need a budget?

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45 minutes ago, gonzoliberal said:

The 'victim-blaming' shiznit runs deep in teh betaverse... and occasionally leaks out.

It's never ALWAYS anything;  it's never always the economy, the weather, my arthritis, my sloth, my sick kids, etc...

But it's ALWAYS something.

 

LOLZ.  Yeah, it's NEVER about individuals making bad decisions or spending beyond their means, even after eight years of Obama. 

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33 minutes ago, Evil Yoda said:

Parents can't teach kids everything; some parents have no idea about these topics, either.

If you don't know basic financial management , you have no business being a parent. I had no problem teaching my children on basic finance. Managing a budget, savings, using credit responsibly and the basics on the stock market. If you're going to put that type of stuff in the school curriculum, what are you removing to fit the time constraints of the school year? Or maybe you want to expand the school schedule to 10 hour days and year round classes? 

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1 hour ago, bmore_ken said:

It's Obama's fault that people are fiscally irresponsible?

Of course not and just as whacked as blaming Bush or Trump.

People have progressively reached the point of entitlement when making purchase decisions.

Not all obviously, but we have raised a generation that was spoiled more and by boomers like myself.

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2 hours ago, soulflower said:

Axios: Americans owe more, save less, and are poorer than in decades

A greater share of Americans have more debt than money in the bank than at any point since 1962, according to Deutsche Bank economist Torsten Slok. And, in a note to clients yesterday, Slok said that, despite record stock market wealth and home price levels just shy of housing-bubble highs, Americans are poorer than at any point in nearly a quarter century.

Why it matters: The data suggest that the third-longest economic expansion in history, and the lowest jobless rate in 17 years, has benefitted an exceedingly thin slice of the American public.

https://www.axios.com/americans-owe-more-save-less-and-are-poorer-than-in-decades-1515262277-9a755b0c-edd1-4abe-a9e9-1f7d1b632978.html

It is going to take a while to get rid of the age of obama mentality.

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1 hour ago, soulflower said:

This is why most people shrug their shoulders when republicans talk about corporate tax cuts or the stock market...

I disagree. Well over 50% of Americans benefit directly by the stock market being a highly productive investment, and when you factor in things like whole life insurance policies, that number goes up even more. Saving is discouraged by policy but investment is not. 

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2 hours ago, soulflower said:

Americans are poorer than at any point in nearly a quarter century.

This is a bit relative though, is it not? Poor in America today is different than poor 100 years ago.

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