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This article states that the wealth of the average American has fallen back to 1992 levels. The real problem with that is that what a dollar would buy back in 1992 now takes $1.65.
Well, if this week continues like it started, it will be worse than that. I checked our computer model and we have gained about 30% since 2007. I don't have figures back to 1992. The $1.65 for a $1 worth of things would totally eat the 30% though and then some. I didn't have our house or land evaluated in 1992 either, so how can you know this for sure. Our groceries seem to be going up a lot. I am concerned about our children and grandchildren if this inflation during a depression continues. I think maybe we all need to chill a little. If you have a roof over your head and food in the house and something to wear, does anything else really matter. We are not promised our wants. We are only promised our needs. I think too many people just WANT too much and forget to count their blessings.
That being said; do any of you have an idea how to turn this thing around. I think I do. I remember reading about the buy bonds campaigns during and after WWII. We need to buy bonds so we are indebted to people in this country and not to another country especially after the interest rate has gone up for our bonds. You certainly are not getting much interest from your investments. Buying US Savings Bonds would solve a lot of problems.
Look at the price of a coke now and look at the price of a coke just 7 or 8 years ago. Our purchasing power is getting a lot weaker here, I'm not calling a United States doomsday or anything like that, but I really think that our inflation is a lot worse off than is being reported right now. I don't think we're going to be surpassed by other countries, but I am just thinking of something more like that 80s. But hey, just my opinion.
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From my portfolio, water cooler, feet on the street, friends, and clients, 40% is about right for the average Joe. (not all were prepared well to be a financial manager in the toughest season.) There were a lot of fingers in the pie. I had 'early retired, pre age 50 in 2005 and HAD MUCH investment real estate (fortunately got rid of all but one).
Somebody (many) got taken to the cleaners. Somebody (FEW) are very fat cats. There will be a lot more fat cats and multitudes more cleaners (janitors, homeless ...) when all is said and done.
Wages have slid dramatically, It is virtually impossible to get commercial credit, (or a job if you are over age 50), spending is not happening.
Is that wealth partially tied to the value of housing??? I assume it is....in that case the number is overinflated anyways.
The government LOVES to make Amerit***s look a lot richer than they are by artificially inflating the housing market......see Fannie & Freddie.
Exactly. True wealth, in the economic sense, is first of all based on job skills and relative competitiveness.
The price tag on the McMansion, if it ever comes, comes later.
I didn't notice that Mr Buffet, for example, sought the McMansion first, then later sought skills in something useful, like analyzing good productive investments in his case (and even he makes mistakes at that). Instead I notice that he still lives in a relatively modest house and keeps working at what he does best, which is a little more than just pencil-pushing, without whining like an adolescent for an overpriced, poorly built imitation of wealthy housing.
History shows that money illusion fools them most of the time.
From my portfolio, water cooler, feet on the street, friends, and clients, 40% is about right for the average Joe. (not all were prepared well to be a financial manager in the toughest season.) There were a lot of fingers in the pie. I had 'early retired, pre age 50 in 2005 and HAD MUCH investment real estate (fortunately got rid of all but one).
Somebody (many) got taken to the cleaners. Somebody (FEW) are very fat cats. There will be a lot more fat cats and multitudes more cleaners (janitors, homeless ...) when all is said and done.
Wages have slid dramatically, It is virtually impossible to get commercial credit, (or a job if you are over age 50), spending is not happening.
We are far from out of the woods on this one.
Agreed, many of us were hit in numerous areas and a real accounting shows a serious drop in net wealth. I also was hit with drops in real estate and investment portfolio with a total drop of about 45%. Lost all contracts as a consultant (unfortunately I was specializing in banking IT at the time) so cash flow dried up at the same time.
So like some others I have dropped out of the job market and call myself retired but with a much more modest plan than I ever envisioned. The great recession hit almost all with different results depending upon where each was in life and positioned financially.
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