Yes, we hear, jobs are plentiful (so says the Obama administration)
Yes, we hear, the economy has mended (so says all the people driving around in new F-150 gas guzzlers)
Yes, we hear, housing is recovering (so says the NAR and the rest of the pump monkeys in housing)
Yes, we hear, it's all going to be ok (so says the stock market near all-time highs)
Approximately 62% of Americans have no emergency savings for things such as a $1,000 emergency room visit or a $500 car repair, according to a new survey of 1,000 adults by personal finance website Bankrate.com. Faced with an emergency, they say they would raise the money by reducing spending elsewhere (26%), borrowing from family and/or friends (16%) or using credit cards (12%).
So basically if nothing ever goes wrong most of America will be just fine.
Yeah, right -- like that's ever been a reasonable expectation.
Folks, only about 1/3rd of so-called millennials and about 45% of senior citizens can cover one unexpected expense such as their car breaking down and needing $500 worth of repairs or a water heater leaking in their house.
Let me point out that these sorts of expenses are routine through your life. In fact, during my lifetime it is rare when at least one unexpected "surprise" of a financial sort does not occur on a yearly basis.
$500 is a pretty small one too, although if you're an apartment dweller you might get away with that being the upper limit of expectations. If you own a house? There is not a prayer in hell of that being reasonable; $2-5,000 surprises happen all the time and $10,000 ones are not unheard of, even with relatively modest homes. Hell, a need to replace the washing machine can hit the thousand dollar mark particularly if you need someone to come install it for you!
The article, in point of fact, cites the Affordable Care Act (that is, "Brosurance") as a positive. Trust me, if you have a Bronze plan and actually get sick you won't think so -- the usual deductible for those plans is around $6,000! Don't got it? Too bad, so sad -- that's why you needed an emergency fund!
What's worse -- far worse -- is that every organ of the media and government is screaming at you to make this situation worse rather than better: Go shop, go buy more iCrap, go get a new car, go to college -- and all of it on credit!
Well?
Americans, as a group, learned exactly nothing by being bailed out with funemployment and skyrocketing food stamps instead of being forced to reckon with their profligate and reckless abuse of credit during the 2000s.
When the next financial dislocation comes and jobs are once again lost by the million+ a month, and it will happen as The Fed and Government have only created the illusion of prosperity, the public will find itself in worse condition than it was in 2008!
Here it comes!
No comments:
Post a Comment