Economics

Swiss top the tables for household savings

"Switzerland tops a list compiled by Handelsblatt for money saved on average by average households. The Swiss put aside 17.5 percent of gross income into savings last year. This may not be entirely surprising given that incomes in the mountain country are three to four times as high as in most European countries. Switzerland’s unemployment rate of 2.9 percent in June compares with an average in the European Union of 12.1 percent in May, according to Eurostat. The report highlights a growing divide between wealthy northern countries and poorer countries in southern Europe. In Greece, the rate was negative 6.4 percent as citizens dug into existing reserves." Continue reading →

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10 things Social Security won’t tell you: The truth about the agency’s bottom line

"About a third of workers in their 50s expect Social Security benefits to be their primary source of income in retirement. The Social Security Administration itself has said that unless something is done to reform the system, it will have to reduce benefit payments to retirees within the next few decades. Less talked about, perhaps, is the concern that the program is having a hard time paying its bills today. In 2010, the Social Security Administration began collecting less revenue in taxes than it needs to cover benefit payments, forcing the agency to tap its $2.7 trillion trust fund sooner than some had expected." Continue reading →

Continue Reading10 things Social Security won’t tell you: The truth about the agency’s bottom line

10 things baby boomers won’t tell you: The aging Me generation is still putting itself first

"Boomers are expected to live longer than any previous generation. At the same time, many haven’t saved nearly enough for retirement. More than 44% of early boomers (defined as those born between 1948 and 1954) and 43% of late boomers (born between 1955 and 1964) may not be able to afford basic living expenses in retirement. [..] Nearly one in six people ages 45 to 64 say that paying for their kid’s college tuition got in the way of saving for their own retirement. That’s not surprising, given that the typical middle-income family will spend more than $230,000 to raise a child from birth to age 18, up 23% (in today’s dollars) since 1960." Continue reading →

Continue Reading10 things baby boomers won’t tell you: The aging Me generation is still putting itself first

Bill Bonner: The war on the young

"Rules, regulations, restrictions - he doesn't recall voting for a single one. Instead, they were imposed upon him. So were the costs of today's omni-eternal state with claims - in the US alone -- on (according to Niall Ferguson) some $238 trillion of future output. Dear reader, between the time when we grew up and today the world has changed. It has been taken over by zombies, desperate to drain the future so they can enjoy it now. Old people get their benefits. Their laws. Their privileges. They get to have things more or less as they want them. And the young? Take it or leave it. No wonder so many are trying to leave." Continue reading →

Continue ReadingBill Bonner: The war on the young

Herding the Sheeple into Government-Controlled Health Care

"By enacting the dual mandates, Obamacare ostensibly was designed to ensure that its costs were borne by businesses, not taxpayers. But when the president decided to enforce only certain portions of the healthcare law and delay others, he shifted the cost of health insurance onto the backs of taxpayers. This is all on top of that private insurance premiums will rise between 20 to 60% in 2014, and some as much as 100%. How long will the private-insurance market survive with such exploding costs? People will not be able to afford such massive premium increases. That seems to be the point." Continue reading →

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Hey, kids – let’s talk about heroin!

"In Switzerland, they took a different approach — give it away for free. Yes, they gave away free, controlled, safe doses of heroin to addicts in a clean clinic with doctors and social workers. They did a study in conjunction with this program and found a 94% reduction in criminal activity by those in the program; addicts were living longer; once stabilized they had an easier time kicking the drug; and… they made it unprofitable to be a criminal heroin dealer, so fewer young people were starting! Changing our drug laws will save lives." Continue reading →

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Housing’s Mini-Bubble Has Popped.

"Mortgage rates are up. Mortgage applications are down. New home permits are down. New home construction is down. Not a little down. 'Falling off the burning trestle' down. Bernanke did it. Let us not forget this after he retires next February. Bernanke did it. When the bad news on housing is on the evening news, recall once again: Bernanke did it. With QE3 pouring $40 billion of newly counterfeited money a month into Fannie/Freddie, and mortgage rates rising from 3.35% to 4.6% in two months, let us sing the chorus: Bernanke did it." Continue reading →

Continue ReadingHousing’s Mini-Bubble Has Popped.

D.C.’s Walmart ‘Super Minimum Wage’ Is a Super Bad Idea

"Wal-Mart swiftly announced the abandonment of plans to open at least three stores in the District of Columbia following a vote by the city council to pass the Large Retailer Accountability Act, which effectively mandated a super minimum wage of $12.50 an hour that applied only to Wal-Mart. As a result, the residents of D.C.'s Ward 7– with a poverty rate of 34 percent and an unemployment rate of 17 percent – will now be denied a source of new jobs and inexpensive groceries and goods. Increasing the minimum wage beyond the productivity of the worker inflicts damage on the poor and the unskilled – the very people it is ostensibly designed to help." Continue reading →

Continue ReadingD.C.’s Walmart ‘Super Minimum Wage’ Is a Super Bad Idea

Busted California Cities: Pension Liabilities

"New accounting standards are being applied by Moody’s to cities. It turns out that the two biggest cities in California — Los Angeles and San Francisco — are way deeper in the hole than previously admitted. But wait! There’s more! San Jose will be downgraded. So will Inglewood ('The Hood'). So will Azusa. The total unfunded liabilities for the state are now over $320 billion. That’s up from $128 billion. In one shot. California is not alone." Continue reading →

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Busted California Cities: Pension Liabilities

"New accounting standards are being applied by Moody’s to cities. It turns out that the two biggest cities in California — Los Angeles and San Francisco — are way deeper in the hole than previously admitted. But wait! There’s more! San Jose will be downgraded. So will Inglewood ('The Hood'). So will Azusa. The total unfunded liabilities for the state are now over $320 billion. That’s up from $128 billion. In one shot. California is not alone." Continue reading →

Continue ReadingBusted California Cities: Pension Liabilities