Middle Class Dismissed

Upside-Down Economic Reporting: Higher Oil Prices Are Good.

"I see. A war looms. Oil will rise in price. The world will pay more to oil-exporting national governments. This is proof of good times ahead. The rising trade deficit (an excess of imports) is good because it will lead to more exports. 'At the same time, a strengthening U.S. expansion is helping companies in the European Union and China boost sales, which will stabilize global growth and, in turn, improve prospects for American exports.' I see. Rising imports mean rising exports. Later. One of these days. Real Soon Now. And so it goes. Economic education marches forward." Continue reading →

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Detroit Stopped Issuing Death Certificates After It Ran Out Of Paper

"The city of Detroit was temporarily unable to issue death certificates in July because it had run out of the special embossed paper on which the certificates are printed -- and it didn't have any money left to buy more. After the city declared bankruptcy on July 18, its vendor for embossed death certificate paper demanded to be paid in cash, not credit. The city's funeral directors received this text message from Michigan Select Funeral Directors Association president Wallace Williams in late July, according to the Detroit News: 'FYI, city of Detroit can’t process death certificates because they have no paper and don’t have money to buy any.'" Continue reading →

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Hopeless Savers: 0.26% on Money Markets

"The plight of savers in America is hopeless. We know that price inflation is over 2% per year. What do investors get in a money market fund? A pathetic 0.26%. Then they pay income taxes on this 0.26%. What if they do not want to tie up their money for a year? Then they get 0.12%. Before taxes. What about interest-bearing checking accounts in an FDIC-insured bank? These pay 0.05%. Let’s be honest. Let’s round it off (after taxes) to zero. The saver is falling behind. The rate of price inflation is eating into the saver’s net worth by at least 2.9% per year. How much money is deposited in money market accounts. About $2.6 trillion. This is up by $2.6 billion this week. This is a recovery?" Continue reading →

Continue ReadingHopeless Savers: 0.26% on Money Markets

Investors (Suckers) Say They Have Things Under Control

"Today, 56% say they are confident about the future. This means that 44% aren’t confident. Today, 42% say they have increased their tax-deferred retirement savings. This means that 58% haven’t. Today, 55% say they are better prepared for retirement than in 2007. This means that 45% don’t think they are. Today, 42% have increased the size of their emergency fund. This means that 58% haven’t. We are asked to believe that people’s personal savings rate is up since November 2007, the month before the recession is said to have begun. Yes, it is — by a percentage so tiny that it is barely visible." Continue reading →

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Election won’t prevent pension crash

"The tax gap isn't the deepest divide in America. The deepest gap is the pension divide, between those few who have a guaranteed cushion in the form of defined-benefit pensions, which promise a fixed annuity at retirement, and those who don't. How the candidates address this divide, cultural as well as political, is crucial, far beyond November. To understand the current mindset, it helps to consider the pension culture of the past. In the early 1980s, many companies, as well as governments, offered employees a defined-pension benefit when they retired. Thirty years ago, about 62 percent of American workers were covered by some kind of plan like this." Continue reading →

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Retire at 65. Become a Ward of the State.

"PBS had a recent article about retirees who stay in the work force beyond age 65. It interviewed economists. What it did not do was provide statistics on how many Americans work until age 75. The answer is: hardly any. Most Americans do not have enough savings. They retire anyway. Most Americans believe in the tooth fairy: the federal government. They think the checks will keep coming. They will not budget. They will spend their $120,000 long before they die. Then what?" Continue reading →

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‘A tide of squatters’ spreads in Spain in wake of foreclosures

"If the organization known as Okupatutambien, or 'Become a Squatter Too' has its way, the country will see a mass expropriation of abandoned or repossessed property to resolve the housing crisis. According to a 117-page “Squatters’ Guide” published on the Internet by the group, there are 3 million empty homes in Spain, or about 100 for each of the 30,000 homeless. The guide advises would-be squatters on how to stake out, enter and remain inside properties, leaving the rightful owner and authorities powerless to evict them. It also offers free counseling from an office in downtown Madrid on how to siphon water and electricity from municipal supplies and how to deal with law-enforcement officers." Continue reading →

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Most people expect to be worse off than parents – except U.S., Chinese

"A 'squeezed generation' of middle-aged Europeans are convinced they are going to be poorer in retirement than their parents, according to a global survey that found the Chinese the most confident about their future and the French, Germans and Spanish the most pessimistic. Americans are the most sure they will enjoy their retirement, the British are among the most likely to worry about being lonely, while individuals in Eastern European countries are uniformly morose about their future. In the survey, 43% of Japanese said they associate retirement with 'insecurity' compared to just 13% in China and the US, and 15% in the UK." Continue reading →

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Voluntary Slavery in Action? ‘Why I Am Leaving College’

"How will I pay my bills? I’ve decided to sell 10% of my (after tax) income for the next 10 years of my life. Why? I’m realistic enough to know that as a 19 year old female, with no proven track record, I have about a 0% chance of finding someone to invest in Senior Living Map. So to up the stakes, I’m offering a piece of me. I can’t guarantee Senior Living Map will be a success but I can guarantee that I will be. So instead of asking you to “bet” on my first venture, I’m asking you to bet on me. I’m asking you to bet and believe that in 10 years time, 10% of my income will be your best investment." Continue reading →

Continue ReadingVoluntary Slavery in Action? ‘Why I Am Leaving College’