The modern day Gilded Age – in 2010 top one percent captured over half of all income gains. From early 2009 the S&P 500 is up 109 percent but home prices are at new lows falling almost 34 percent.
Most Americans derive their net worth from the equity built up in their homes. This has been the case for many decades. As the stock market races upwards to stratospheric highs it is hard for many average Americans to understand why it is that economically they are stuck in the same place. New tax data [...]
Retirees face a perilous financial decade ahead – Over 30 percent of workers have less than $1,000 saved for retirement. Defined-benefit plans down to 20 percent from over 60 percent in 1983.
While financial institutions can rearrange assets and play around with accounting rules modifying reality the progression of age is hitting millions of Americans. There is no pause button when it comes to growing old. Recent surveys are highlighting a very challenging road ahead for retirees. A survey released by the Employee Benefit Research Institute (EBRI) [...]
Little Known Ways the Federal Reserve Punishes American Savers and Supports Conspicuous Consumption.
The Federal Reserve is one of the most mysterious organizations in the world. What they don’t hold back on however is their intentions for the American saver. They are one of the biggest key players in the financial bailouts yet very little is ever discussed about this organization on national or even cable television. The [...]
The catastrophe of our economy for the young American worker. Average college debt higher than typical new automobile cost, annihilation of pensions, and younger Americans moving back home because of financial necessity.
The economy for young Americans might as well be in a parallel universe to the stock market run since early 2009. Talks of recovery must fall on confused ears as many young college graduates compete for fewer jobs with higher amounts of student debt. In the last decade college graduates have encountered the highest tuition [...]
What is the median household income in the US? A crisis spanning multiple generations and the taboo of household income.
Household income is a taboo topic even though people have a visceral enjoyment of spending their hard earned money. As we go out and spend during this holiday season many people have absolutely no clue what other family members or neighbors make. Some would argue that household income is absolutely private and I would agree [...]
The chastisement of the American saver – Federal Reserve offers a higher interest rate to banking reserves than too big to fail banks offer American savers.
Americans are facing a banking system that is largely designed to go against their best economic interest. Even a decade ago people were able to find a savings account or a certificate of deposit that would keep up with the rate of inflation. Today, most typical savings accounts at too big to fail banks offer [...]
Federal Reserve punishes savers by subsidizing big banking bailouts – Two largest U.S. banks offer a paltry 0.05 annual percentage rate while increasing service fee charges and upping loan interest rates. S&P 500 not cheap.
The challenge most Americans are facing is first, trying to save money. If that hurdle is accomplished the next tougher question becomes where the money should be placed. The Federal Reserve by default with a negative interest rate policy has punished savers at the expense of massive debtors. The Fed for many decades since the [...]
Federal Reserve punishing savers in low interest rate environment – Since the 1960s 5-year Treasury Bills average 6.5 percent. Today a high yield money market account will get you 1 percent.
Saving money is usually pushed to the background in a debt induced economy built around spending. Marketing firms are designed with the intention of parting you from your hard earned dollar. The housing bubble was a manifestation of a system permeated by easy access to debt and promises to repay current purchases with future dollars. [...]
As more Americans save the typical too big to fail banking savings account is paying close to 0 percent in interest. At the same time the average credit card interest rate is over 14 percent.
The one silver lining of this crisis if there is one to be had is that many more Americans are actually saving more money. However the problem that many now face is historically low interest rates through bank savings accounts. Average Americans have few places to go receive a decent return (5% or lower) without [...]
FDIC massive problems ahead with smaller bank failures. 105 banks hold 77 percent of all banking assets. $10 trillion held in too big to fail while 775 banks appear on the FDIC problem list.
The FDIC went ahead and closed another handful of banks this Friday. It really is a rare day to see 400,000+ jobs added and the market retreat so significantly. A large part of the gains came from temporary Census hiring which peaked last month. If the economy were really recovering banks wouldn’t be failing on [...]
