Is this ever true.
Americans are debt addicts. They love to spend. The politicians love to spend. Everyday Americans love to spend. Spend, spend, spend. And we wonder why many things, our society even, feels so cheap.
People live on credit. They finance cars, houses, vacation – cell phones – think about that – PHONES. They don’t save.
And why should they? They get nothing for saving. There’s literally no real return on socking money away in a bank these days.
But it’s a recovery…
Wait till the downturn. Things are a little too real in this country already.
But remember Denmark is the happiest place in the world. (sic)
Heck, if you feel the need to go this route it probably makes sense to convert the cash, at least a good bit, over to silver and gold.
This isn’t a surprise. We are still in the midst of a lingering depression/recession. People need to get by and retirement for many is down the road in hopefully more prosperous times. Right now the kids need shoes and school clothes.
The EU is trying to scare money into risk assets. It may just take the money. I guess folks should have listened to Nigel Farage last year.
There was a time when saving, being prudent, delaying gratification, and being modest was rewarded in this country. That is much less the case now under a Federal Reserve which manipulates interest rates down for the benefit of the Wall Street class.
To paraphrase David Stockman – The world’s central banks have not suspended the market mechanism. They can kick the can, they can lie, they can move assets around on balance sheets, they can even call debts assets. But in the end there is no free lunch.
That is, he proposes measures sure to make even more people poor.
There is an adage in the financial advisor world—go after money in motion.
Welcome to economic bizarro world.
* I gave this speech on April 15th, 2009, in Charlottesville, Virginia. I had forgotten about it, but stumbled across it again today. It deserves a post to ACC.