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NEW YORK -- NEW YORK (AP) — Five years after U.S. investment bank Lehman Brothers collapsed, triggering a global financial crisis and shattering confidence worldwide, families in major countries around the world are still hunkered down, too spooked and distrustful to take chances with their money.
NEW YORK -- NEW YORK (AP) — Five years after U.S. investment bank Lehman Brothers collapsed, triggering a global financial crisis and shattering confidence worldwide, families in major countries around the world are still hunkered down, too spooked and distrustful to take chances with their money.
Some of us haven't changed our ways at all in the past five or ten years. We've always been reasonably financially responsible: Never had a credit card balance, never had a car loan, never had a student loan, don't drink starbucks more than a couple times a month, don't buy the latest iFad every couple months, drive a 15 year old truck, bring our lunches to work, etc. This on one income raising four kids.
What a chronic mess: circa 1980s, shoeshine investors' were connived/hoodwinked into passive investing—which then morphed into a 401k quasi-bubble IMHO. Then the financial elitists made a MAJOR cardinal mistake: they saddled the youngest generation (millennials) with too much DEBT & now they need them to over-consume more than ANY generation before them.
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Originally Posted by article
Americans pulled the most money out over five years — $521 billion from stock mutual funds, or 9 percent of their holdings, according to Lipper. But investors in other countries sold an even larger share of their holdings: Germans dumped 13 percent; Italians and French, more than 16 percent each...It's gotten worse in China, Russia, Japan and the United Kingdom, too.
The clear-out of unsavvy investors is what caused/allowed the remaining stocks the opportunity to go back up. The savvy investor is what's leftover for the USGovt/virtual taxpayers to coddle with. Also, notice that most/all(?) of the interviewees that bailed out on debt-slavery are educated middle/upper middle class citizens!
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Originally Posted by article
The wealthiest 1 percent of U.S. households are saving 30 percent of their take-home pay, triple what they were saving in 2008, according to a July report from American Express Publishing and Harrison Group, a research firm.
Even the unsavvy 1% realize that they're what's next for dinner.
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Originally Posted by article
Maybe, if there are more people like 63-year-old Sahoko Tanabe of Tokyo, a new buyer of stocks, and an unlikely one.
Like many Japanese, she last loaded up on stocks in the late 1980s, right before the country's main stock index began a two-decade swoon to a fifth of its value. She's feeling more optimistic now. "Abenomics," a mix of fiscal and monetary stimulus named for Japan's new prime minister, has ignited the Japanese stock market, and Tanabe has discovered a new appetite for risk.
"You're bound to fail if you have a pessimistic attitude," she says.
These are the leftovers that need to be coddled.
Last edited by DSOs; 10-09-2013 at 05:37 PM..
Reason: deleted late, comma
Some of us haven't changed our ways at all in the past five or ten years. We've always been reasonably financially responsible: Never had a credit card balance, never had a car loan, never had a student loan, don't drink starbucks more than a couple times a month, don't buy the latest iFad every couple months, drive a 15 year old truck, bring our lunches to work, etc. This on one income raising four kids.
We are like this too, although due to a lengthy un/underemployment we ended up with some credit card debt and we also have one car loan and student loans. As soon as the employment situation has been rectified, we have been throwing everything at the debt, cutting costs wherever we can. Come December, the student loans will be all that is left (which are on an income based repayment plan) so if something were to happen the payments would be manageable. After December, we will be saving as much as we can, not spending more on luxuries. It's just what you have to do at this point.
[quote=John1960;31734832]NEW YORK -- NEW YORK (AP) — Five years after U.S. investment bank Lehman Brothers collapsed, triggering a global financial crisis and shattering confidence worldwide, families in major countries around the world are still hunkered down, too spooked and distrustful to take chances with their money.
When you still see waves of people lining up outside the Apple store whenever a new product gets launched I honestly don't see people who are looking to be careful about wasting their money.
We are saving more than we ever have (close to 45% this month) and we are totally preparing for the worst that has yet to come. I'm not even worried about the corruption and lack of oversight that caused the first economic meltdown. I'm really concerned about a catastrophic event (or chain of events) in the environment that creates serious interruption in production/distribution, if not causing the entire money-market system to collapse and reconfigure (which would be a very ugly, painful process). I think for those who have even a modest amount of wealth or access to credit, there is an incredible amount of redundancy in products: we have all our needs met and are over saturated. Those who are on the bottom are still too poor to afford any of these items (and most of the time don't have access to them anyway). In no way do I believe this sort of unlimited growth cycle economic model can continue. Either we will deplete the fossil fuels and struggle with finding affordable and adequate sources of energy or we'll completely tip the planet's bio and physical systems so far out of whack that us and nearly everything except cockroaches are wiped out. Why would I go out and spend money on more junk today when I know it's going to cause us problems in the future? Why would I support industries that are not being accountable to the needs of future generations, if not our own? If everything was made under the 'cradle to cradle' certification, you can betcha I would be out spending all my money. But it's not, so I won't.
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TAG: digital welfare queens
investors is what caused/allowed the remaining stocks the opportunity to go back up. The savvy
