Oooohhh, I smell some baby-boomer-bailout legislation around the corner...
People once again spent everything they made and then some last year, pushing the personal savings rate to the lowest level since the Great Depression more than seven decades ago.
The 2006 figure was lower than a negative 0.4 percent in 2005 and was the poorest showing since a negative 1.5 percent savings rate in 1933 during the Depression.
The savings rate has been negative for an entire year only four times in history - in 2005 and 2006 and in 1933 and 1932. However, the reasons for the decline in the savings rate were vastly different during the two periods.
During the Great Depression, when one-fourth of the labor force was without a job, people dipped into savings in an effort to meet the basic necessities of shelter and clothing.
Economists have put forward various reasons to explain the current lack of savings. These range from a feeling on the part of some people that they do not need to save because of the run-up in their investments such as homes and stock portfolios to an effort by many middle-class wage earners to maintain their current lifestyles even though their wage gains have been depressed by the effects of global competition.
Whatever the reason for the low savings, economists warn that it the phenomenon exists at a particularly bad time with 78 million baby boomers approaching retirement age. Instead of building up savings to use during retirement, baby boomers are continuing to spend all their earnings.
February 01, 2007
Baby Boomers partying like there's no tomorrow: US personal savings fall to 74-yr. low
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81 comments:
Great, can't wait to pick up the tab in my 2009 income taxes!
By the way Keith, Orange County California median home price RISING to $636,000 this week a midst a housing shortage.
Are you really sure there's a housing bubble? Perhaps your message hasn't penetrated the OC cone of silence?
I predicted this back when IRAs were first introduced. When the bulk of boomers retire, the fact that so many don't have any savings means they'll go out and vote us socialist. Tax rates will skyrocket to support them and withdrawals from retirement accounts will be draconian. I mean, boomers are a largely self-centered lot and won't sit around eating cat food. They'll use their influence and sheer numbers to get the "help" that they need.
By the way Keith, Orange County California median home price RISING to $636,000 this week a midst a housing shortage.
You are a troll. You are a realthwore. You are a desperate home debtor. You are a liar. You are Gregg Swann. You are Casey. You are Suzanne. You are worse that David Lereah. You are David Lereah.
There you go HPers, I saved you the trouble of calling him all those names individually.
The pictured POS loser is typical of the phony boomers crawling around Phoenix and surroundings acting like made men and players.
Tens of thousands of these cockroaches, wearing cheap knock-off Tommy Bahama shirts, oversized brand-X watches, shopping Chinese crap at Target,(stupidly believing its superior than Wal-Mart), and driving a hunk of American made Detroit junk are living and moving into Arizona with their bankrupt finances and values.
Actually just financially overextended third-stringers in search of a cheaper way of life since they can't make it anywhere else, as they spend every cent and go into debt to maintain a buffonish vacuous lifestyle. These are the mooks who think Cadillac is a "classy" car and eating at Outback Steakhouse is high end dining.
The horror of living with such scum!
Keith,
bailouts are what you get, when you live in a democracy and the majority of voters own/ or are buying their own home.
Seems to me, that you will only be happy living in a plato republic where only the rich and the powerful can vote.
Since u are living in England, please tell us when we can expect the housing market to collapse.
I notice you did not display the Daily Express Newspaper headline about house prices going up 1000 a day. Why?
Why don't you admit it, that the politicians would rather start a war, than allow the housing market to collapse.
Why save when appreciation in your home can earn more than $60,000 a year? No point in funding your 2% bank account when you can earn more from sitting pretty in your house.
I've heard a few associates tell me that they see their own home as "passive income" and they can always count on this money. Even so, equity is only cash when you sell. Even when you borrow, you still have to pay it back.
I'm surprised US folks are saving at all.
Dr. Housing Bubble
One thing to keep in mind with the "SAVINGS RATE". It doesn't take into account contributions to 401(k) or IRAs.
My 401k is about the only savings I have. I put in 10% of my salary every month. Yet according to govt stats, my savings rate is 0%.
It's one more example of government stats that are quite meaningless.
Hehehe...great picture! Is this "playah" going to Thailand to meet the "ladies" or freaking what? Nice pendant, BTW. Too funny.
Has mortgage fraud stopped in the OC? Remember, "cash back at close" raises median sale prices. And its got that wonderful odor of money...
the picture of cheesiness!
>> They'll use their influence and sheer numbers to get the "help" that they need.
And so richly deserve...
While these numbers may be used to show us how the savings rate is changing from month to month and from year to year, it seems foolish to compare the savings rate now with that during the great depression. The national savings rate is calculated by comparing the level of spending against the amount of money people are earning after-tax.
One example of why these figures are suspect is because they disregard appreciation of investment assets and real estate gains.
So, if the value of your stocks goes up that is not savings? If the value of your house goes up that is not savings?
How are modern investment vehicles such as 401(k)s and IRAs factored into all of this? What about mortgage payments? If you are making payments to your house in a 15-year fixed rate mortgage are you not saving some portion of that money as your equity grows?
Perhaps the rising value of housing has more to do with this savings rate than we give it credit for. The obvious effect is the wealth effect of having an appreciated house, however, it is also true that people must take out bigger mortgages and therefore a larger chunk of their disposable income must go for their mortgage. While this looks like lower savings in the short term, after the house is paid off has not substantial wealth been accrued?
This economic data is so contrived! I completely disregard it.
Where do you get these great caption photos? That one was great! I think I know that guy!
I personally have sold my home and have a nice fat wad of cash, but that presents another problem. If Hyper inflation hits, I'm screwed as purchasing power is crap (happening right now?)
But if deflation hits, then I'm golden, big time cash is king.
Solution, I'm moving to a cheaper part of the country, paying cash for a place and socking the rest of the money away in a CD. That way, yes my property may go down, but it doesn't matter unless I need to move, but since I'll be totally debt free, I won't need to move due to financial reasons (hopefully).
Anyway, if you have the means, get out of debt, it's worth it no matter what happens...interest paid to the bank is not money well spent.
Tony
Nortel stock kept rising to $90/shr in September 2000 even after the NASDAQ had peaked in March 2000.
By late 2002, Nortel stock hit $0.46/shr
Sometimes the body keeps moving for a few minutes even after the head has been chopped off.
Nobody can argue with basic economics that says a family earning $75K/yr cannot afford a $600K house. It doesn't matter how much they love CA and how everyone wants to live in The OC.
Back when I bought my house for $170K in 1999, I would have loved to have a $250K house. The facts were that I could not afford those payment required. I make $70K/yr with no children. I wouldn't even try to buy a $300K house much less a $600K house.
The answer to "why" is answered in detail here:
http://www.mises.org/story/2221
*** Ron Paul 2008 ***
Take the wage cap off of social security at least it will stay solvent
There are currently 12,365 foreclosures listed in Orange County. I guess they didn't hear about the median price increase.
By the way Keith, Orange County California median home price RISING to $636,000 this week a midst a housing shortage.
He loves nouns. He hates verbs.
I had a question, well actually a couple, when I saw this article.
How EXACTLY is this -1% savings rate calculated? How it is calculated really makes a difference whether this number scares the hell out of me, or if it is another statistical number that doesn't really mean alot based upon how the world works today. Like, for example, looking at the meaningless median home price - instead of $/sqft to determine if home prices are dropping. Median home price might make you say "there has been no or little correction". $/sqft might make you say "holy crap!".
Is AGI what they look at for income - after all 401K savings, for example, are removed. If so, I save a ton - but it wouldn't look like it if the number was calculated that way. Does anyone know what exact numbers are used to get to the -1% number? Are Social Security payouts included in income, recognized investment income, just payroll, ect, ect . . . you get the idea. What does the average retiree pull from their IRAs, 401Ks, ect on a yearly basis after they retire? What percentage of the population are they? If someone pulls $60K/year from an IRA it takes alot of us saving to push the savings number positive - depending on how the number is calculated, what's included, what's not, ect . . .
Can anyone really explain this number? Thanks for the insight.
LOL. Whose the troll: The statement maker? or the name caller?
There is evidence that the OC median is $636K, but it does not mean that market is strong by any means. I would not want my $$ there right now.
Vote us socialist? Not at all. More like, "... the Air Force WILL have to hold a bake sale to buy a bomber!"
I think that many Baby Boomer were expecting to cash out on their real estate assets to fund retirement . I'm sure there were a number of baby boomers that also bought 2nd homes with the idea that they would make a higher return than saving accounts at the time .
With the new tax exclusion on capital gains up to 500k every 2 years ,it made real estate investing a way to fund retirement .
Young people were also interested in this real estate get rich quick way of gaining wealth . I feel sorry for young people because many believe that there won't be any social security left by the time they get there .
It's also just a crying shame that many young people got priced out of the real estate market by this run-up
I'm a baby boomer ,but I cannot justify the young people not having affordable housing as well as the young people not getting social security while only some baby boomers collect .
I think as it stands now alot of baby -boomers are going to lose alot of money in this real estate crash . The government is most likely going to raise the age again that baby boomers can retire and perhaps lower the entitlements . I don't know ,but its a big problem .
That being said , I don't want to see any generation getting priced out of housing or eating dog food in their retirement .
The baby boomers that I know are stick-in -the -muds that are not partying .The BB's I know are more concerned about health costs and living cheap life-styles . I know you got a certan group of boomers that spend money like there is no tomorrow ,but I would like to know what % is that type verses the types I know .
I would also like to know what % of young people are spending like a drunk sailor and not saving also.
One thing I can say if your young and your not a baby boomer , at least you can learn from the mistakes of baby boomers who might end up eating dog food for their folly . I wish you the best young people and I will not vote against your welfare and I know alot of baby boomers that consider the youth of this country in the decisions they make .
You young people are the future .
Prices continue to go up because of the RAMPANT fradulent cash back deals.....true prices are way down....once the public really figures out that prices are only supported by fraud....then the house of cards tumbles
Expect "Don't touch my social security!" and increased minimum wage requirements for seniors, as well as a minimum quota for baby boomers in any well paying job.
And of course huge taxes (with a large "retired person personal deduction"), and maybe even a "minimum real estate sale" Son of RTC whereby the government is forced to buy off the boomer's real estate at an inflated above-market price.
Oh yes, then they will complain about the Dissipative Slacker Youth and then demand that 22 year olds (in addition to all the college debt and low paid jobs) will have to endure a forced year or two of National Service, i.e. lethal slavery in the Army or sponge bathing bilious ungrateful elderly a "alternate community service".
Once these baby boomers in congress die off or retire, then we can fix this madness, not until then though.
If RE prices are rising then why are forclosures up over 100% in many parts of California? Shouldn't these people have been able to sell at a huge profit instead of getting kicked out of their house?
Does the rise in prices include the costs of remodeling and repairs? How much did the wood floors or new carpet cost? How about the granite countertops or new bathroom? How much cashback was received or was there a new car included in the sale?
I'm very happy with the quality of Chinese made goods. Far ahead of the junk that came out of low-cost manufacturers in the 70's and 80's.
Not to worry, Shrillary Clinton will "fix" things right up!
Does anyone actually think she's a viable Democrapic candidate for 2008, or just a guarantee that the worst presidency in US history is followed up by yet another stooge from the same party? (e.g., McCain)
"Perhaps the rising value of housing has more to do with this savings rate than we give it credit for"
according to the statistics, 40% of folks entering retirement owi money on their house, up from the mid 20's in the 1990's I think.
as we know, rent is currently far cheaper than a recent mortgage payment...
Hey guys,
I know that Target's a cheap Chinamart but please tell me, how many independent store chains are there nowasdays?
Next, besides TGIF, Outback, or heaven forbid Pizzeria Uno, how many consistent national restaurant chains are there where your Filet Mignon in Albany NY is the same as the one nearest to Scottsdale AZ?
You see, there's not much left of our "culture" other than the generic and cheesy. The Hawaiian shirt goofball jpeg is the average American today.
The issue here is that everyone "senses" inflation is going to wipe out the dollar so it does no good to save. There are limited resources that really matter and getting a piece of that is more important than saving stupid pieces of paper. Not even pieces of paper anymore, just some electrons in a computer somewhere.
Currency sucks. That's why people aren't saving.
What the fuck is that on his neck? the keybox to his condo for sale?
HH said:
"Quit blaming the "baby boomers" for everything...most of them put food in your stomach and a roof over your head"
I say:
I generalize, and blame the entire generation, especially its leaders. But there are millions of BB's, including my folks, who are BB's yet embraced the WWII generation's morals and ways, vs. the BB generation's.
My folks taught me about saving, about living within your means, about retiring early if possible, about doing the right thing, about caring about other people more than yourself.
We see the over-consumption, materialistic, debt-ridden, me-me-me ways of other people and cringe.
Every dog has his day though. And I fear the majority of BB's are F'd when it comes to retirement. Especially if Gen X / Gen Y has anything to say about it. Good luck raising our taxes and cutting our benefits to pay for the cushy retirements of BB's. Not gonna happen. A generational war is coming my friends, and the housing crash kicks things off.
"So, if the value of your stocks goes up that is not savings? If the value of your house goes up that is not savings?"
No.
Savings is what provides additional capital. Sitting on a capital gain does nothing economically.
Look...we're to the point that we shut down bridges and virtually declare martial law in a major city because some guys put up a few Lite Brite boards with a cartoon character on them.
We're to the point that someone can go on a plane, hold up a tube of toothpaste, and say, "Ladies and gentleman...I've got a tube of toothpaste and I'm not afraid to use it" and Homeland Security will tackle you and take you away to some secret location where you won't speak with a lawyer for at least three years.
But at least we have lots of cool bling from Walmart via China.
amen 10:55. It makes as much sense as blaming the woes of the country on illegals, or jews or blacks or (fill in your favorite scapegoat here).
bozonian said...
The issue here is that everyone "senses" inflation is going to wipe out the dollar so it does no good to save. There are limited resources that really matter and getting a piece of that is more important than saving stupid pieces of paper. Not even pieces of paper anymore, just some electrons in a computer somewhere.
Currency sucks. That's why people aren't saving.
Thursday, February 01, 2007 10:49:05 PM
------------------
One has to be smart enough to save the right way -- gold, silver, oil, etc... Cash in a money market account or whatever is good for short term expenses but in the longer run the interest you get will always lag the true rate of inflation.
I heard a sound bite from Mitt Romney that he wants to make all savings accounts non taxable, in addition to retirement accounts, to encourage savings. Now that is an interesting idea!
My grandfather would love this blog. You people sound just like him. Always grumpy, always pessimistic about everything. Glass 1/2 empty all the time and an impending doom always around the corner.
He's 87, grew up dirt poor on a farm without running water, lived through the 30s and lost 2 fingers in WW2.
What's your excuse? Your latte wasn't prepared quite right this morning?
All of you have lived through nothing but prosperity since the day you were born. The poorest American today lives a better life than than what was considered "middle class" 3 generations ago. And here you all are typing away on your computer connected to the internet through a high speed connection and crying about how bad your lives are.
Can you not see how pathetic you sound?
401K plans are great if they're your own, attached to your business. You can apply pretax $42K to a self-administered plan, use any full service brokerage shop, and decide exactly what you want to invest in whether it's PMs, Intl ETFs, bear funds, equities, indices, bonds, or forex.
The problem is that corporate 401Ks limit you to a select group of mutual funds and as you know, those funds (esp S&P index types) are the reason why peoples' plans are screwed when BBers retire. These plans should never have been oversold to corporate America because they'll clearly fall short of the older pension plans when everyone over 65 retire in waves.
"When the bulk of boomers retire, the fact that so many don't have any savings means they'll go out and vote us socialist."
Back in 1960, Hayek looked at social security (Ponzi scheme) and boomers (last rung of the pyramid) and predicted they'd end up in concentration camps when they tried to steal (by voting) the wages of a smaller, but younger and more physically able generation that made up the police force and military.
"My 401k is about the only savings I have. I put in 10% of my salary every month. Yet according to govt stats, my savings rate is 0%."
Then you'll be glad to know Jesse Jackson and some fellow Democrats have a deal just for you. His plan is to hit all 401Ks and private pension funds with a 15% tax to pay for programs that help the "less fortunate". It's supposedly a one-time tax (LOL!) because rich, pasty-white SOBs don't really need all that retirement money. Ben Dover is coming to town.
Americans know the price of everything and the value of nothing.
Jesse Jackasson and Al Sharpless are buffoons. They are the typical eftist race-pimp scumbag and the role models for those guilty white liberals
With insufficient savings, a lot of BB's will end up working at crappy McJobs (as in "would you like fries with that?") in their old age. Serves them right too, for living beyond their means and creating this lopsided, cancerous, hollowed-out "service" economy. Collectively, the BB's are the generation that "led" the country from lone superpower status to the brink of collapse. There is plenty of blame to go around for both Slick Willie and Dumbya the Decider. Eventually the retirement age for collecting a public pension will have to go up, way up (like 75 or so) because only a certain percentage of the population can ever be retired. It's just math. The equation must be balanced.
The baby boomers will be in charge of the senate/congress for a very long time, and will vote themselves gold plated pensions.
If America can waste 500 billion on the military, the baby boomers will not listern to the words - we cannot afford more welfare/social security.
Gen x will also vote for social security since they do not want to take care of their old age parents.
Jesse Jackson eh? According to Joey Biden he's not clean. For once I agree with a Democrap.
No wonder GDP was up 3.5% for Q4'06.
These folks may regret buying all those toys using credit cards and an equity line of credit.
Pawn shops should be a good investment in 2007.
AMIGAUSER said...
The baby boomers will be in charge of the senate/congress for a very long time, and will vote themselves gold plated pensions.
If America can waste 500 billion on the military, the baby boomers will not listern to the words - we cannot afford more welfare/social security.
Gen x will also vote for social security since they do not want to take care of their old age parents.
Friday, February 02, 2007 12:07:01 AM
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The resources just aren't there. If all these pensions simply come off the printing press in the basement of the Federal Reserve, all we'll get is lots and lots of inflation. Then it's "look out below" as the dollar turns into toilet paper.
I'm sure the *actual* BBs in Congress will vote *themselves* gold-plated pensions, but who says they'll try to take care of the rest of their misbegotten demographic? After all, it's the "ME ME ME" generation.
The other way to raise all this money is by hiking taxes through the roof. That probably won't work too well as the economy collapses and anyone with anything going for them leaves the country.
"I mean, boomers are a largely self-centered lot and won't sit around eating cat food."
If you believe that boomers are any different than anybody else, then you are sadly mistaken. Before you spit your venom think, for at least a second, your mad hatred might be directed at innocent people, you self-centered schmuck.
(anonymous said:)
> One thing to keep in mind with the
> "SAVINGS RATE". It doesn't take
> into account contributions to
> 401(k) or IRAs.
> My 401k is about the only savings I
> have. I put in 10% of my salary
> every month. Yet according to govt
> stats, my savings rate is 0%.
> It's one more example of government
> stats that are quite meaningless.
They don't count it as savings because it ISN'T YOUR MONEY. It's held in a regulated trust fund which you do not control.
The government doesn't call it your savings because they intend to spend it.
Before this is all over, IRAs, 401Ks and 503Bs will be nationalized, poured into one big festering pot of whatever Social Security turns into, out of which you will receive an allowance sufficient to buy some low-grade kibble.
You are a fool for not CONTROLLING your own finances (and by extension, your financial future).
For those of you who are old enough (or young enough) to remember "risky business", sometimes you just gotta say "what the fuck, and make your move". For whatever thats worth, think about it.
WOW, I think we have some angry Boomers on here now!
I'm surprised US folks are saving at all.
-------------
How can you save if you are spending 50% of your slary on a damn house??
Will the 20 or 30 something police officer continue to evict families at gun point when he (or she) himself can't afford a bed for the kids to sleep in?
The USA doesn't have a good track record in caring for the elderly; be careful how hard you squeeze the folks who *can* subsist independently.
Anonymous said...
Once these baby boomers in congress die off or retire, then we can fix this madness, not until then though.
Thursday, February 01, 2007 9:46:13 PM
------------
Prosperity, like many genetic traits, skip generations.
california prices are meaningless due to the fact that owners do not pay current assessed valuation taxes every year, as compared to most other places, as for new york, a 600,000 evaluation would take 45,000 a year in property taxes alone to keep (the great vampire state)
had avery dependable cad 18 plus years, fancy still at 30 years and dependable, maybe the electric ignition system and timmings the only quality development in automotives in 35 years
Last I heard, Jesse Jackson wasn't a policymaker. But it has more emotional impact to throw up the black bogeyman. Whatsamatta, did the name Hillary escape you?
Stupid freakin republicans. No wonder you selfish turds so rarely have ruled this country.
Holy shit now I;ve heard everything by you idiots...a defence of Jesse Jackson. Jezuz even most libenuts realize what a scam artist that guy is. Only in HPland is he legit and to be listened to.
God I only hope on election day you're too stoned to make it to the polls.
cornholio mangus said:
> You are a fool for not CONTROLLING your own finances (and by extension, your financial future).
And you are a fool for thinking you can. The government and central bankers are simbiotic wealth eating machines. When wealth accumulates to a sufficient amount - anywhere - they just change the rules and start feasting.
What I wish people would wake up to is that the only thing that is constant is when you make a plan, at the point in time least advantageous to you, the rules will change and you'll be left with nothing. People in the '70s after 30 years of work saw their private pensions and savings wiped out because of the inflation from the Vietnam war. And these were the Depression savers. Saving didn't save them! Ever see the amount of money paid out now for those pensions? Won't even buy cat food in today's dollars.
Social Security started out as a savings account where the more you earned, the more you put in, the more you took out based on something like the last 10 years of your earnings. All this money flowed into accounts. Then Congress changed the law stating you personally no longer have rights to the money. And now they've spent it. So now they have to "fix" it by 1) calculating it based on your entire working life (think what that will do to divorced women who stupidly took time off to raise children...but hey - they must have been rich to do that, no biggie...) 2) raising the age to whatever is necessary 3) means testing - and THINK about this one. This is where when you started out, the rules and collective wisdom said put your money here to be responsible and protect your future and now they come along and say you have enough. We're going to TAKE what WE think is excessive - and spend it where WE see fit. Like Iraq...
4) Privatize (no one points out that all the money will be funnelled through a few very grateful brokerage firms, select stocks - and why not force people to buy up all the Treasuries that China isn't buying any longer...
5) And the best yet - increase taxes dramatically to "save" the plan (they already did this once and they spent the resulting surplus - think they won't this time???)
Think you'll just put money aside in a bank? Greenspan lowers the rate to 1%, while the credit card companies charge %29.99%. Yeah, that'll save you. Add in inflation and that's about the only clearly up front losing plan.
Think because you have money in a private stock market account it's safe? Once there's enough money there, you can bet tax laws will change yet again or "means testing" will come up, or better yet, simply an old fashioned (managed) crash.
Burying gold in your backyard? It's fine now, but if a significant amount of value goes in that direction, look for anti-hoarding laws. And soon with everything including people RFID chipped, it'll be easy to enforce.
Whenever I hear people haughtily attacking the Democrats or the Republicans or the Baby Boomers, etc., I see them swallowing the hook - the hook that'll keep us all enslaved. Don't take it! Start reading what really causes inflation and what effect it has on your chance to secure your future. Read Ron Paul's speeches and maybe we'll have a chance to regain our freedom.
"amen 10:55. It makes as much sense as blaming the woes of the country on illegals, or jews or blacks or (fill in your favorite scapegoat here). "
Don't equate being anti-illegal immigration to being anti-Jew or anti-black, you stupid idiot!
If the savings rate would take 401(k) and IRAs into account, it would be even uglier. Here are the latest stats on that:
"Nearly 40 percent of all households have no retirement savings accounts of any kind beyond Social Security. Half of the households headed by a worker aged 55 to 59 have $10,000 or less in a 401(k) or in an IRA. Of that age group, 36 percent have no 401(k) or IRA savings.
For single women, the problem is even worse. Only 38 percent have 401(k) plans from a past or current job, with a median balance of just $8,000, as opposed to married females, who participate at a 54 percent rate with a median balance of $27,000."
As you can see, there's no great improvement on that front either, and we know that those retirement accounts are going down fast to pay for those "exotic mortgages". Good try, though, Anon-Thursday, February 01, 2007 7:39:56 PM.
Hey, Anon-Thursday, February 01, 2007 11:34:05 PM:
Your grandfather is 87, grew up dirt poor on a farm without running water, lived through the 30s and lost 2 fingers in WW2...and you are bitching because he's grumpy and pessimist?
No wonder...and he probably will have to leave all his paid for assets to his baby boomer family, so they can blow it with crap from China and India, leased gas guzzlers that support the ass of "mui amigos" Saudis, and get a second on his house to flip overpriced properties.
Your grandfather is 87, grew up dirt poor on a farm without running water, lived through the 30s and lost 2 fingers in WW2...and you are bitching because he's grumpy and pessimist?
Dude are you high? Read the original post again.
He has reason to be grumpy for the above mentioned reasons. You on the other hand act like he does and yet have lived a life of prosperity since the day you came out of your momma, therefore you have nothing to complain about.
Don't equate being anti-illegal immigration to being anti-Jew or anti-black, you stupid idiot!
The anti-illegal crowd is the same crowd who is anti-anything not WASP you fucknut.
Just to show you how the things work, I was taking a marketing course towards my degree at some reputable B-School, and my baby boomer professor (considered one of the best by BusinessWeek) said that marketing companies usually ignore Gen Xs because they are hard to fool, too cynical. Too bad the Gen X group is very small. We need more people who question authority, don't believe in BS from the government (especially this current one), don't like to be puppets, easily manipulated by media and government officials (and Fox channel). There are some baby boomers still thinking that global warming is not real and that Saddam had anything to do with 9-11. Please, wake up and stop screwing the planet, selfish bastards!
Talking about immigration, let me remind you all that those 20 million illegals, who were working for the housing boom, will be unemployed during the housing bust. But since those millions of illegals will get a greencard from Bush very soon, they will be able to apply for welfare and social services...all paid by your taxes! Like Borat would say: "very nice, yes?"
If the savings rate would take 401(k) and IRAs into account, it would be even uglier. Here are the latest stats on that:
You're an idiot. If I put 10% of my income into an IRA/401k my savings rate is 10%. The government doesn't count that so my savings rate is 0%.
Any money I put it in, be it $1 or $100,000 is better than $0 which is what is currently counted as "savings".
Counting something as savings vs. cunting nothing as savings does not make the situation uglier.
said that marketing companies usually ignore Gen Xs because they are hard to fool, too cynical...There are some baby boomers still thinking that global warming is not real
Uhmmm I'm 32 and I think global warming is full of shit Mr. Gen X. And are you fucking serious, too hard to fool? Go to your local Starbucks and you'll see how idiotic your statement is. 30 something lemmings drinking $5 lattes that they could make at home for $0.25. Oh yeah, nobody's fooling that crowd, no sir.
I say.....FU@K EM!!!
all this talk about people and their 401k plans. Where I work maybe half contribute to one and of that half the ammount is around $30 a week. Big freekin deal folks, guess you can retire very wealthy on that!!
Where the heck do you work at $30 a week 401k contributions? Who gets paid weekly anyway, unless you're in the menial work bidness.
And how do you know what people save? I haven't a clue what my co-workers do with regards to their 401k.
Me calls bullshit on you sir.
I've put away at least $5K a year since my very first job at 23 and for the last few years have maxed it out. All my 401ks combined are at around $300,000 give or take. My wife's got about $100K in hers and another $50K or so in Roth IRAs. So we have close to 1/2 a million yet according to the government and the "savings rate" we have no savings and save 0% of our income. All part of the propaganda to create a retirement/savings "crisis" which will require me paying more in tax to solve.
As usual the socialist renters here assume that because they don't have a pot to piss in everyone's in the same situation. Sorry renter, you're wrong yet again.
I like the lockbox around that short-peckers neck!
Now that there's no house appreciation, savings will begin again, at least for those who are not owing the bank on their houses.
Signed,
A Concerned Baby Boomer
It was signing your name a zillion times at closing that makes you a angry crusty old bastard right?
Baby Boomers are brilliant. They know an Argentine hyperinflation is on the way and are acting accordingly.
Savers are fools who will be destroyed.
re savings rate.
I made a 20% down payment on and spent $30K finishing the basement on my new house. Counts as spending. I pay down my real estate debt (I have rentals) at $5K/month. Counts as spending. (I did buy a 42" flat screen as well :-) Paying my kid's tuition: counts as spending.
My IRAs/401Ks increased by 50K this year: does not count as income. Counts as wealth.
I do think that my contribution to my 401K counted in the saving rate: just not the increase in value.
US national income last year: $9 trillion. Wealth creation $5 trillion. Boomers hold a lot of that. I'm 53 years old.
re: debt free. If you can buy assets that will appreciate low, then financing them is a good idea. Have owned my rentals for almost 10 years. If they go down 25%, I'm still in good shape.
re: saving. I have very little in cash and bonds. 50% stocks-50% single family houses. I'm better protected against inflation than in the 70s.
IMHO, as one poster indicated, most boomers I know are fiscally conservative and have a decent net worth. We have done our partying (tons of it) and are settling in for the long haul. Believe it or not, partying gets old once you hit your 50s. My wife and I can do a dinner or do a show: both make for a longer evening than either of us want!
"I do think that my contribution to my 401K counted in the saving rate: just not the increase in value."
Not they didn't. 401k or IRA contributions are not considered savings for this measure. This isncludes the actual contributions and the increase in value.
The "savings rate" goes back to the 1930s when people had two options with their income. Spend or put in the pank. This was pre IRA, pre 401k. This was back when few people had mortgages and practically nobody except for the very well off had investments. So the calculation was pretty simple. You make $1000, spend $900, put $100 in the bank your saving rate is 10%.
Now that same $1000 could be $800 spent, $100 in IRA, $75 in mortgage debt payment and $25 in the bank. Officially the savings rate is down to 0.25%, but in reality you are "saving" a lot more.
We're dying at the rate of one every 55 seconds according to www.boomerdeathcounter.com. If we increase our partying the old grim reaper might just show up!!!!
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