“This is going to be a national crisis…”
“This” being America’s woefully underfunded pension liabilities, according to Karen Friedman. She’s the executive vice president of the Pension Rights Center.
(A place called the Pension Rights Center does in fact exist. We checked.)
MarketWatch columnist Jeff Reeves howls in confirmation that “collapsing pensions will fuel America’s next financial crisis.”
“This is not a distant concern,” warns he, “but a system already in crisis.” Continue reading
Tag Archives: retirement
76 million Americans are struggling financially or just getting by
Wages are finally rising. Unemployment is the lowest it’s been since 2007. Inflation remains muted.
But 31% of American adults, or 76 million people, say they are struggling to get by or just barely making it, according to the Federal Reserve Bank’s latest survey on Americans’ economic well-being, which looked at 2015.
The Fed survey highlights many of Americans’ continuing economic worries. Some 46% of adults say they can’t cover an unexpected $400 expense or would have borrow or sell something to do so. Continue reading
Most Americans are one paycheck away from the street
Some 63% of people can’t deal with a $500 emergency
Americans are starting 2016 with more job security, but most are still theoretically only one paycheck away from the street.
Approximately 63% of Americans have no emergency savings for things such as a $1,000 emergency room visit or a $500 car repair, according to a survey released Wednesday of 1,000 adults by personal finance website Bankrate.com, up slightly from 62% last year. Faced with an emergency, they say they would raise the money by reducing spending elsewhere (23%), borrowing from family and/or friends (15%) or using credit cards to bridge the gap (15%). Continue reading
Half of American households can barely save a nickel
Please see the source link for the video.
Brother, can you spare a nickel?
For roughly half of American households they answer is “barely,” according to the results of a new survey by Bankrate.com. About half reported they are setting aside no more than 5 percent of their income in savings. One in five said they’re not even able to save a penny.
The highest savings rates were reported by those in the middle of the income ladder; more than a third of households earnings between $50,000 – 75,000 said they’re saving more than 10 percent of their incomes, a higher rate than those in the highest-income bracket. Continue reading
Americans: One Small Emergency Away From the Street
In general, America is also one catastrophic event away from irreparable implosion.
Most Americans are only one paycheck away from the street, according to a new survey by personal finance website Bankrate.com.
The survey of 1,000 adults found that approximately 62 percent of Americans have no emergency savings for things such as a $1,000 emergency room visit or a $500 car repair.
Martin Armstrong Warns This Is The Age Of Civil Unrest
All governments had better open their eyes for we are on the brink of a major convergence between both the Cycle of Civil Unrest, Civil War & Revolution and International War. Both of these models converge and as I pointed out at the Cycles of War Conference, this is the first time we have seen this convergence since the 1700s. Continue reading
Spain Plunders 90% Of Social Security Fund To Buy Its Own Debt
With Spanish 10Y yields hovering at a ‘relatively’ healthy 5%, having been driven inexorably lower on the promise of ECB assistance at some time in the future, the market has become increasingly unsure of just who it is that keeps bidding for this stuff. Well, wonder no longer. As the WSJ notes, Spain has been quietly tapping the country’s richest piggy bank, the Social Security Reserve Fund, as a buyer of last resort for Spanish government bonds – with at least 90% of the €65 billion ($85.7 billion) fund has been invested in increasingly risky Spanish debt. Of course, this is nothing new, the US (and the Irish) have been using quasi-government entities to fund themselves in a mutually-destructive circle-jerk for years – the only difference being there are other buyers in the Treasury market, whereas in Spain the marginal buyer is critical to support the sinking ship. The Spanish defend the use of pension funds to buy bonds as sustainable as long as it can issue bonds – and yet the only way it can actually get the bonds off in the public markets is through using the pension fund assets. The pensioners sum it up perfectly “We are very worried about this, we just don’t know who’s going to pay for the pensions of those who are younger now,” or those who are older we would add.
Via Wall Street Journal: Spain Drains Pension Fund In Borrowing SpreeSpain has been quietly tapping the country’s richest piggy bank, the Social Security Reserve Fund, as a buyer of last resort for Spanish government bonds, raising questions about the fund’s role as guarantor of future pension payouts. Continue reading