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This is part of the reason why the middle class has been crushed in this country. Serious matters (money management, and debt) have been turned into infotainment by the elite. Orman, Ramsey, Jim Cramer should not be like Judge Judy.
-The biggest issue all of these "experts" should be tackling is debt. That should be the main theme. Investing, stocks, 401k contributions, those are far down the list of importance if you're paying 18-25% or more on a credit card. These shows never emphasize how long it takes to pay off debt. That should be a constant and drilled into viewers minds....it's going to take you 9 years to pay off that $6,000 credit card debt paying the minimum. 9 years! 12 years! That should be a banner hung on these shows, hung on the ceiling. Do you want to be paying a bank CEO's salary for 9 years?
Ramsey does this with every caller asking them to break down their debt first then asking them what their income is including all household income. After that he tells people what to pay according to the figures given; however, he is consistent in saying the first thing is food, shelter, electricity then going after the lowest debt first.
-Another danger with debt is *assuming* you'll have a steady income during those 7 or 10 years, to pay that minimum payment. The volatility of the economy and debt isn't addressed. Many people have been sucked into something they don't understand. Too many blind assumptions.
If you listen to Ramsey, after getting the information he concludes whether the issue is a "income" issue or a "budget" issue. If it's the former then he will say "go out and deliver pizzas" or like he did with a caller tell her that she should print out business cards to clean houses in the wealthier part of town.
You can't assume anything today. People can only pay off their debt with the current income and they need to take a hard look at their finances to see whether their current income takes care of their needs.
That is the heart of the problem these days. The Middle Class has seen their wages stagnant , and everything escalate.... They are fast becoming a rare dying breed.... Income is at the basics of most peoples problems. Otherwise , there would be some built in cusion for the what ifs.
I grew up on a farm in the fifties, we were middle class , not poor , not rich , but there was always a way to make things work. We had no credit cards , health Insurance , or huge home payments. You saved for the lean years , and there were quite a few. You paid the difference when buying a new car with cash, and , when you wanted something and did not have the cash , the local store just put it on lay a way...........what have we created anyway ? ..A monster that has no end or beginning, just a revolving Peter rob to pay Paul rob society.... Its time to return to the old days for a while , maybe we all could learn a lesson or two.
My parents paid the huge sum of $15k for their house on a 1 acre lot in 1975. If you wanted that today in the same area you'd pay $150k (thats a 1000% increase). That's an outrageous growth in price.
How about the price of cars? In 1975 you could buy an average new car for what? $3k? Now the average new car costs close to $30k. That's a 1000% increase.
Did their salaries increase by that amount over the same period?
YEAH RIGHT!
My mom's salary in 1975 was roughly $10k....when she retired in 2005 it was $36k. So her salary grew by 360% over approximately the same time period. That's a huge disparity. Her salary should have been $100k to actually keep up with the growth in price.
My parents paid the huge sum of $15k for their house on a 1 acre lot in 1975. If you wanted that today in the same area you'd pay $150k (thats a 1000% increase). That's an outrageous growth in price.
How about the price of cars? In 1975 you could buy an average new car for what? $3k? Now the average new car costs close to $30k. That's a 1000% increase.
Did their salaries increase by that amount over the same period?
YEAH RIGHT!
My mom's salary in 1975 was roughly $10k....when she retired in 2005 it was $36k. So her salary grew by 360% over approximately the same time period. That's a huge disparity. Her salary should have been $100k to actually keep up with the growth in price.
And we wonder why there are so many foreclosures, debt crisis , underwater auto loans. etc. Simple , the Middle Class has been squeezed to the point that they are living off credit cards at 30 per cent interest, just to stay above water enough to keep the wolf away from the door.
More is coming. The housing problem is getting worse. Florida thought the worst was over...now they are down again , outpacing Michigan as the worst off state in high unemployment....What needs to be done IS a redistribution of wealth in this Country. It starts from the top down.....
You haven't listened to Suzy Orman much it seems. Most of her callers and her advice is realistic and to the point. Not what some people want to hear , but the truth...( I do agree she can be a bit grating at times , no Judge Judy however ).
I think they try to be too many things to too many people.
-Jim Cramer is all over the place on tv, trying to predict everything. From stocks, oil, the economy, to the what the FED is doing.
-Similar with Orman. With a fico kit, will and trust. But I bet 25-50% of her audience is in some sort of debt.
They can say that debt is bad, or don't get into it. What isn't emphasized is how long it'll take you to pay it off. How hard it is. How obscene bank profits have been.
It's like Judge Judy, in that it tries to present a complicated topic in a 30 minute or hour long show. Like a trial fit for television, only its finances fit for televsion.
I think they try to be too many things to too many people.
-Jim Cramer is all over the place on tv, trying to predict everything. From stocks, oil, the economy, to the what the FED is doing.
-Similar with Orman. With a fico kit, will and trust. But I bet 25-50% of her audience is in some sort of debt.
They can say that debt is bad, or don't get into it. What isn't emphasized is how long it'll take you to pay it off. How hard it is. How obscene bank profits have been.
It's like Judge Judy, in that it tries to present a complicated topic in a 30 minute or hour long show. Like a trial fit for television, only its finances fit for televsion.
Most people find finances give them a headache. The attention span of the tipical American is very short...unless it watching " dancing with the Stars".
This is part of the reason why the middle class has been crushed in this country. Serious matters (money management, and debt) have been turned into infotainment by the elite. Orman, Ramsey, Jim Cramer should not be like Judge Judy.
-The biggest issue all of these "experts" should be tackling is debt. That should be the main theme. Investing, stocks, 401k contributions, those are far down the list of importance if you're paying 18-25% or more on a credit card. These shows never emphasize how long it takes to pay off debt. That should be a constant and drilled into viewers minds....it's going to take you 9 years to pay off that $6,000 credit card debt paying the minimum. 9 years! 12 years! That should be a banner hung on these shows, hung on the ceiling. Do you want to be paying a bank CEO's salary for 9 years?
-Another danger with debt is *assuming* you'll have a steady income during those 7 or 10 years, to pay that minimum payment. The volatility of the economy and debt isn't addressed. Many people have been sucked into something they don't understand. Too many blind assumptions.
Actually, I think Suze Orman deals with a lot of this stuff. She emphasizes the dangers of debt and warns people not to always count on their income being there.
Jim Cramer is of a different stripe. He seems more of an entertainer.
Actually, I think Suze Orman deals with a lot of this stuff. She emphasizes the dangers of debt and warns people not to always count on their income being there.
Jim Cramer is of a different stripe. He seems more of an entertainer.
Pop financial talk are all entertainment. Some are more sincere than others in their motives, but its safe to say they are all modern day P.T Barnums of the financial world.
If they provide the training wheels to a more financially astute population though, so be it. The advice they give is 9 out of 10 times rather harmless (cramer being the exception, hes pretty dangerous).
Pop financial talk are all entertainment. Some are more sincere than others in their motives, but its safe to say they are all modern day P.T Barnums of the financial world.
If they provide the training wheels to a more financially astute population though, so be it. The advice they give is 9 out of 10 times rather harmless (cramer being the exception, hes pretty dangerous).
The danger with Cramer IMO is that you waste so much time. He advocates (or he use to) listening to conference calls, following earnings and all this "stuff" in an attempt to be a good investor.But time is money, and it doesn't make sense for most people. The concept of trying to outperform the market year after year is futile to most people, because they don't have the time or inclination.
Suze Orman is a better entertainer, but still its entertainment. I'd rather know the fundamentals of *what's* going on, and *how* vs who presents. If you can grasp the fundamentals, it doesn't matter who's presenting it to you.
-It's true people have short attention spans. And Cramer, Orman are giving people what they want(like the world wrestling federation giving people what they want). But do you want wrestlers giving you financial advise?
Considering the financial mess we're in (a $1.6 trillion deficit), wrestlers shouldn't be our main source of financial information.
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