While total global household wealth fell 5.2%, Europe took the biggest hit due to its debt crisis and the global economic slowdown, with its wealth dipping 14% to $69.3 trillion. Asia’s wealth proved more resilient, shrinking only 1.9% over the same period to $74.1 trillion…
Crazy times we live in!
The changing face of America: New figures reveal how U.S. will be dominated by elderly white people and young Hispanics by 2050
Evolving demographic a serious threat to American economy, experts warn
Still worrying gulf between earnings of the two groups, census data shows
Hispanic population increasing, but educational achievement still poor
Older whites urged to help fund better schooling for other ethnic groups
Expert: Failure to change inequality could lead to ‘economic fragmentation’
America’s future [...]
A new story on Huffington is on how 50% of Americans now hold 1.1%, down from a high of 3.6% (1995), of total wealth in this country. The top 10% now have a share of 74.5% of the country’s wealth, with the 1% having their own share of 34.5%. The remaining share of the wealth, approximately 25%, is shared among 40% of Americans. So, in sum, 90% of Americans have [...]
The U.S. economy is in a massive amount of trouble. There aren’t enough jobs. There isn’t enough money to go around. Business activity is slowing down again. Household wealth has been falling. Food prices have been rising. Many state and local governments all over the country are flat broke and are drowning in debt. The federal government has been rolling up unprecedented amounts of debt in an attempt to keep things [...]
Young US households — those aged 35-to-44 — lost a stunning 59 percent of their wealth during the recession, a government report released yesterday revealed.
That’s the stiffest hit of any age group, said the report from the US Census Bureau.
The age group — typically struggling with mortgages, tuition bills and rising tax bills — makes up the backbone of America’s middle class.
The losses were mainly due to the drop in [...]
Here’s an unhappy observation about the minimum wage: Congress last increased the rate in stages in 2006, topping it out at $7.25 an hour in 2009, or $15,080 a year.
That amount, when adjusted for inflation, is actually lower than what a minimum-wage worker earned in 1968 and is too meager to offer anyone the chance to climb out of poverty, let alone afford basic goods and services.
About 10 states are now [...]
Gold may not be ‘Money‘ to the Chairman, but it sure is to Turkey. The WSJ Reports that “The Turkish government, facing a bloated current-account deficit that threatens to derail the country’s rapid expansion, is trying to persuade Turks to transfer their vast personal holdings of gold into the country’s banking system.” The reason: “The push to tap into the individual gold reserves—the traditional form of savings here—is part of Ankara’s efforts to reduce a [...]
There is only one reason why anyone would park their funds in equities, they expect their “investment” to make money. That is as fundamental as finance and economics gets. We were just told that the P/E ratio of the market is 23, and that is indeed quite high, so when I see a day like yesterday I can only conclude that those with money to buy equities are expecting markets to go [...]
1) It’s super easy to calculate
2) Everyone pays the same rate
3) It eliminates many of the wasteful activities that our current system causes, like tax harvesting for loss-making investments
The wrinkle is that my tax plan wouldn’t be based on income at all, but rather on assets.
I’d do away with ALL forms of income tax, including payroll, capital gains, interest income and inheritance tax. Instead I’d have a flat 2% tax [...]
by The Economic Collapse
How do you decide whether you are wealthy or not? Do you determine that by how much money you spend at the stores? Of course not. You can tell if you are wealthy or not by comparing your assets (the money in your bank account, equity in your home, etc.) to your liabilities (your mortgage, credit card debt, student loan debt, etc.). Well, a lot of Americans seem [...]
Things get really confusing during deflation. As soon as you say ”DEFLATION” …… people think……oh prices are going down.
In deflation….the economy is collapsing from falling demand.
The actual VOLUME of goods is going down. Producers adjust. But, to keep the same amount of profit……prices actually go up in order to compensate for the loss of volume…..in other words……instead of a million eggs for a penny they sell 500,000 eggs for 2 [...]
NY Times article from Jdargis wrote:
The wealth is not limited to Republicans. Though President Obama was not in the 1 percent in 2006, before his entry to presidential politics, he earned between $1.8 million and $6.8 million last year, largely from book royalties.
Interesting that they had to find some economist at NY University to come up with the $700,000 figure instead of using the governments [...]
Vanessa Vick for The New York Times
A taco restaurant owned by Armando Moya, a Mexican immigrant, in Woodbridge, Va., outside Washington. He opened it in 2005, the same year he bought a house, which he has had to sell.
WOODBRIDGE, Va. — Hispanic families accounted for the largest single decline in wealth of any ethnic and racial group in the country during the recession, according to a [...]
NEW YORK (CNNMoney) — One reason that the U.S. economy still struggles to achieve sustained growth is that Americans are a long way from recovering the trillions of dollars of household wealth lost during the Great Recession.
U.S. household wealth fell by about $16.4 trillion of net worth from its peak in spring 2007, about six months before the start of the recession, to when things [...]
by Fiat Money
Despite his Harvard MBA, Bush Jr. could ligitimately hide behind his “I didn’t know” defense of Halliburton fraud, Enron fraud, stolen elections, 9-11 dereliction of duty, $9 BILLION in cash “GONE MISSING” in Baghdad under ‘Viceroy’ L. Paul Bremer’s tender mercies…
…But Obama-rama is presiding over the INTENTIONAL THEFT of TRILLIONS of dollars of taxpayer extorted “bailouts” http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aY0tX8UysIaM , to say Obama’s SEC Chairwoman, Mary [...]
(NewsCore) – STONE MOUNTAIN, Ga. — US Federal Reserve Chairman Ben Bernanke said late Monday that he expects to see a very high rate of foreclosure starts in 2011.
“We hope to see this decline by next year,” he said in a speech delivered in Georgia.
Bernanke added that foreclosures are negative at a macroeconomic level for the United States.
“The most important transmission mechanism is that, so long as [...]
NEW YORK (CNNMoney) — The average American family’s household net worth declined 23% between 2007 and 2009, the Federal Reserve said Thursday.
A rare survey of U.S. households, first performed in 2007 but repeated in 2009 in order to gauge the effects of the recession, reveals the median net worth of households fell from $125,000 in 2007 to $96,000 in 2009.
Titled “Surveying the Aftermath of [...]
by charles hugh smith
The Fed’s Quantitative Easing Part 2 has destroyed $4.6 trillion in household wealth, all to boost the stock portfolios of the top 10%.
The Federal Reserve’s stated goals in launching QE2 were to trigger a “wealth effect” and boost inflation. The net result of their program is a massive destruction of household wealth. The basic idea is that goosing “risk assets,” i.e. stocks, then [...]
Just in case there is someone living in a cave who still doesn’t understand that the Fed’s one and only mandate (forget that crap about inflation and jobs) is to give everyone one last shove into the all in ponzi before the diarrhea hits the HVAC, here is David Rosenberg explaining, for the cheap seats, what the Fed’s terminal intent is.
The Fedâ€™s intent is [...]
Every time The feds print a dollar SUBTRACTS wealth not ADD!
Brian Sack – New York Fed’s POMO man – says expanding the central bank’s balance sheet will help stimulate a “relatively tepid” recovery not only by lowering longer-term borrowing costs but adding to household wealth, by supporting asset prices.
â€œThe expansion of the securities portfolio to date has helped to foster more accommodative financial conditions, and further expansion would likely [...]
The daughter goes out and racks up a huge amount of debt relative to her part-time job earnings. Mom takes away the credit card.
Daughter: Mom, you can’t do that. This austerity measure will destroy my economy and create misery.
Mom (smirks and pats clueless daughter on the head): Oh Honey, you’ve already destroyed your economy now and for the next three years. Now go to bed. We’ll begin to make plans [...]