There are people out there that are fabulously rich. Usually it’s through sports entertainment or invention. But most people get rich the old fashioned way by saving. They don’t get real rich, but nobody ever has enough money no matter how much they make.
There is a conundrum here that the politicians don’t quite understand. Once you get to the “rich” level, you don’t really spend any more than a poor person. The extra goes into savings. This is where the economy is dragging. The massive infusion of Fed funds into the economy has really gone nowhere. A lot of the funds have made it into retirement fund real estate investing or the stock market. Neither of these creates very many new jobs. Real estate investing in good years returned about 21% on the investment, and in today’s market, 10 percent is a very optimistic expectation. Stocks are doing a lot better than cash in the bank, but there is the question of “Why?” The economy is not in great shape.
Then there is the time element. Given 40 years, $100 a week for 20 years at 8% and then sitting on it for another 20 resulted in a million dollars. That was the expected in the 1960’s. In today’s world a million dollars might buy two tear down homes in Los Angeles. Notice one thing, the people that started saving 40 years ago, don’t have the buying power with their savings from 40 years ago. And it is too late for them to save more now.
We are also at a point with nonexistent interest rates, why even save? There is no added value for surrendering your immediate gratification for later consumption. Buy it now!
So basically we have a bunch of new savers looking down the road to retirement 40 years away, and reality hits them. The money in the bank is going nowhere. Whereas the old people that have saved for 40 years notice that inflation has reduced their buying power of their savings by a great amount. If your 20 years old, this concept is way over your head and makes no sense. Aggravatingly so, if you are over 65 nobody cares when you complain about inflation, you are invisible, you are an “Old Fart,”—- and what do they know.
The thing that really cracks me up lately, is all the ads for medications for the senior citizens. For the drug companies, it is a given, that old people are the target for buying these new pills that they want to sell. Take Preparation H, Cialis, and Viagra. I can’t figure out how the medications know where to go, you certainly don’t want erect hemorrhoids or a member with no sensation. But I digress.
Where to from here? We have a problem, the money not being spent by savers is squirreled away for retirement and is being eaten alive by government printing (inflation). Congress knows the syndrome, too old to complain—nothing to worry about they will die soon, so blow them off. Inflation is only a game; through time you will understand it’s consequences but until then, it will be too late to do anything about it. So grab a deck chair, and move it to another spot on the deck, give yourself that slight feeling that you are still in control.
The Mongolian Government is preparing to restore 106 mining licences that it cancelled last year, after it was discovered that the licences were issued illegally.
Donetsk Mine Rescue Equipment Company-Self-Rescuer Devices, Oxygen Respirators and Booster Compressors, and Chemical Gas Detectors
Donetsk Mine Rescue Equipment Company (DZGA) is one of the world leaders in producing means of individual respiratory protection, with more than 50 years of experience in the safety business.
Real Overpriced Counties of America: Orange County named most overpriced county in the entire United States. Fitch Ratings and Trulia point to a bubble in the OC with prices overvalued by 30 percent.
When it comes to real estate, we know that Californians enjoy drinking from the gold cup of mania. Lusting over real estate seems to be as common as traffic on the 405. People in California have a deep rooted cultural and economic amnesia. I bet half the population has very little idea regarding the history […]
While the contract’s qualitative specifications remain the same, the updated technical rules refer to the silos’ general terms and conditions for physical delivery.
What will be the impact of cash investors slowing purchases in California? Large investor sales drop 31 percent year-over-year in California. 1.2 million homeowners underwater.
The market in California is starting to splinter off into two distinct segments. First, in lower priced areas the pullback of investors has caused inventory to steadily rise. In places like the Inland Empire there doesn’t seem to be any urgency to buy anymore. In less desirable areas of L.A. and OC you have seen […]
It’s always hard to say goodbye when spring TV finale season rolls by. But don’t get too distraught over the couple month long hiatus until fall premieres. Besides the sunshine and warm weather coming our way, the TV gods are delivering some of your favorite summer TV shows, and a couple of brand new ones as well. Check out the roundup of over 50 new and returning premiere dates for summer 2014:
Thursday, April 24
-“Bad Teacher (CBS) at 9:30 p.m. EDT
-“Black Box” (ABC) at 10 p.m. EDT
Sunday, April 27
Two Penn State alumni are leading the charge to erect a new statue honoring late and former head football coach Joe Paterno.
The alumni and coordinators of the project, Kim Intorre and Ted Sebastianelli, received approval from the Borough of State College to install the new life-sized bronze sculpture roughly two miles from where the original stood and just across the street from Penn State’s main campus.
Prague, Czech Republic-base Bohemia Interactive recently launched a number of updates for zombie survival game “DayZ.” The updates fixed a number of bugs within the game, from players breathing too loudly to binoculars not working correctly when users are in certain positions. It also added a variety of new features.
“Two very important changes were improvements to multiplayer netcode and an entirely new mouse control system that removed the previous one based on mouse acceleration,” the developer stated on its blog.
According to recent finding by 9to5mac, Apple Inc. (Nasdaq:AAPL) is working on bringing voice control to its next Apple TV. The latest SDK of Apple’s mobile operating system iOS 7.1 suggests that Siri, Apple’s mobile personal assistant, is getting another level of support, which some say is for the set-top box.