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    Americans are saving?

    I keep seeing on the news that Americans are saving too much money and contributing to the recession. I want to throw up when I hear this over and over on the news. I feel that this is false and propaganda. No one I know CAN save money since they are all in debt and losing their jobs. No one is spending money because they have no money and are in debt up to there eyes!

    Anyone else agree with me here?

    #2
    No one I know is saving either. I wish I could though....lol.
    Filed Ch. 7 Pro Se: 12/11/08
    341 Meeting: 1/7/09
    Trustee's Report of No Distribution: 1/9/09
    Discharged: 3/10/09

    Comment


      #3
      the problem with the entire system, inpain, is that it relies on continual credit consumption for growth - once that stops (which it has), the system implodes.

      See.. all these loans are created money to begin with (i.e. non existent) which have attached, interest, which is also non existent.

      Basically it's a game of musical chairs.. too many people with only a finite money supply. When the music stops, many people are left standing because of this fact that much money never existed in the first place - there will and must be 'bag holders' so to speak. This is why natural 'busts' occur on a repetitive basis.

      This last cycle pretty much takes the cake with regard to credit growth and creation. Sadly, most in government don't understand money creation themselves, and all they know is 'spend spend spend we gotta keep it going'. They don't realize the music has stopped for now, and the smart money hoards and becomes risk AVERSE.

      During times of deep recession/depression it does not make sense to service debt - especially if it prevents you from buying the necessities (food, shelter, etc). Many have suffered and will continue to suffer for a long time. Making hundreds of dollars in debt service payments a month, will not get you ANYWHERE during a deflationary cycle. It is best to wipe the slate clean and move forward with better habits, lesson learned.

      Sadly, us filing BK here are more realistic than the govt and larger corporations that are being propped up with taxpayer dollars, that should be allowed to fail. It would have been painful, but the recovery could have occurred MUCH sooner. Instead, they are servicing these bad companies by creating more money (debt) in hopes it might turn around in the future. Do you see the correlation of what most of us here were doing - making our monthly payments to our debt service, hoping things would turn around in the future? How many of us 'wasted' thousands of dollars just trying to get by, when we should have just realized the big BK would have ended our problems sooner, and saved us thousands of dollars.

      A dollar in the bank is worth much more than a point on a 'credit score'. Our purging will be 'painful'.. but our recoveries will occur much sooner than those who don't realize that servicing debt during deflation is just.... well.. stupid!

      Comment


        #4
        I totally agree. I think they truly believe that consumers are pulling back their spending so they can hold onto their money when the truth is that the average American is completely tapped out and can't spend any more! I think economists don't see the current recession the way I do - the tip of the iceberg.

        The hundreds of thousands of jobs lost in the past two months haven't even started to affect the foreclosure situation. My prediction is that there will be a second wave of foreclosures, this time a tsunami.

        Comment


          #5
          I think that those (unlike me and and some of the people here) who were smart enough to not live beyond their means ARE saving money. I mean, think about it: If the "average" American didn't have payments on CC's, vehicles, houses they couldn't really afford, and luxury items, saving wouldn't be a problem. There are plenty of people out there who didn't buy a bunch of "stuff" and just saved their money. Those people are the ones who get laid off and don't really worry about it because they have only the most basic living expenses and money in the bank, to boot. Perhaps the state of this economy will scare some sense into people so that after the troubled times are over they will re-evaluate their spending habits. It sure has changed my thinking.
          Filed 12/24/08...a Merry Christmas indeed!
          341 Meeting 01/23/09 Declared No Asset
          Last day for objections 03/24/09
          Discharged and closed 03/26/09

          Comment


            #6
            I know because of my past and this BK, I am now reformed and am a saving fanatic. I'm so scared about how quickly I got into debt and am terrified to ever open that door again. I credit my personal situation more than the economy for the dramatic shift in my thinking, but I'm sure there are many out there that didn't have to hit the low I did to start making changes in the way they handle money. I also realize that I am incredibly fortunate to be in the position I'm in though. My husband and I are tenured, contracted teachers, so we make decent money and have probably one of the more secure jobs out there right now (as secure as any job can be these days).

            Originally posted by xboxfan View Post
            I think that those (unlike me and and some of the people here) who were smart enough to not live beyond their means ARE saving money. I mean, think about it: If the "average" American didn't have payments on CC's, vehicles, houses they couldn't really afford, and luxury items, saving wouldn't be a problem. There are plenty of people out there who didn't buy a bunch of "stuff" and just saved their money. Those people are the ones who get laid off and don't really worry about it because they have only the most basic living expenses and money in the bank, to boot. Perhaps the state of this economy will scare some sense into people so that after the troubled times are over they will re-evaluate their spending habits. It sure has changed my thinking.

            Comment


              #7
              Originally posted by xboxfan View Post
              I think that those (unlike me and and some of the people here) who were smart enough to not live beyond their means ARE saving money. I mean, think about it: If the "average" American didn't have payments on CC's, vehicles, houses they couldn't really afford, and luxury items, saving wouldn't be a problem. There are plenty of people out there who didn't buy a bunch of "stuff" and just saved their money. Those people are the ones who get laid off and don't really worry about it because they have only the most basic living expenses and money in the bank, to boot. Perhaps the state of this economy will scare some sense into people so that after the troubled times are over they will re-evaluate their spending habits. It sure has changed my thinking.
              Fortunately, I don't own a home nor do I have money in the stock market.

              Because of those two things, Americans have lost more 'savings' than ever. Homeowners have experienced a 40% loss in 'equity savings'. Retirees and working 401k owners have experienced a 40% loss in 'retirement savings'. As much as we shouldn't, most feel psychologically that their worth is reflected in their 'paper' assets. Unfortunately those paper assets have taken quite a trimming, which does lead to a stop of consumption out of fear, and more cash savings -- the problem is, the sentiment is still and remains, a net 'loss' of savings.

              "Savings" have been cluster bombed in the last year.

              Comment


                #8
                Just another way to pass the blame. The government is a bunch of liars and will do anything to keep this country under its control. Soon they will not be able to and hopefully there is a revolt.

                Comment


                  #9
                  Originally posted by OKBK View Post
                  Just another way to pass the blame. The government is a bunch of liars and will do anything to keep this country under its control. Soon they will not be able to and hopefully there is a revolt.
                  Here, I fixed it for you:

                  "the government is a bunch of liars and LARGE CORPORATIONS AND BANKS will do anything to keep the government and its people under control. Soon they will not be able to and hopefully there is a revolt."

                  Comment


                    #10
                    Only in America!

                    Come on people. This country and her economy are not controlled by BIG Corporations or BIG government (though Obama is trying). Our economy runs on the backs of and is controlled by the American consumers and entrepeneurs.
                    Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

                    Comment


                      #11
                      1. Saving MORE to SURVIVE -- Yes

                      2. Saving LESS to spend or spare -- None.

                      Comment


                        #12
                        Originally posted by OhioFiler View Post
                        Only in America!

                        Come on people. This country and her economy are not controlled by BIG Corporations or BIG government (though Obama is trying). Our economy runs on the backs of and is controlled by the American consumers and entrepeneurs.
                        interesting.. from the looks of things our economy is currently fueled by shoveling hundreds of billions of taxpayer dollars at large financial institutions deemed 'too big to fail' while everyone else watches their equity in everything deplete before their eyes.

                        so if that's your definition of running on the backs of americans.. then yeah, ok.

                        how much influence do you have on policy you don't agree with? how much influence does Shell, GM, Citi, etc have? Yeah.. that's what I thought.

                        Comment


                          #13
                          Originally posted by OhioFiler View Post
                          (though Obama is trying).
                          oh yeah i forgot to mention i really get tickled when i hear someone complain about Obama and big government. Let's just completely overlook Bush's historic deficit spending the last 8 years... that doesn't count, ok? I think the count is still 2 Bush TARP's to 1 Obama TALF... but who cares Obama is the one having to deal with it.. so we can all just blame him..

                          Comment


                            #14
                            Hmm, Usury, you sound and speak exactly like another poster named Mkuki.

                            Comment


                              #15
                              Originally posted by fltoo View Post
                              Hmm, Usury, you sound and speak exactly like another poster named Mkuki.
                              Really? I'll have to find some of his posts it sounds like we would get along.

                              Edit: LOL you're actually right. I just searched for his posts and the way he(she?) writes with lots of .... and (parens for additional explanation) is extremely similar. Wonder if mkuki is left handed...

                              Comment

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