Wednesday, July 12, 2006

America's savings hoax exposed

Spend, spend, spend!

One: Stop wasting your time and money on useless repetitive studies. Stop droning on with the same tired mantra: We know America is a debt-ridden, consumption-addicted nation with a bankrupt public policy on savings, run by myopic politicians whose main goal is re-election and kowtowing to special-interest money. Neither party has the will or the guts to stand up and get into action. That's reality folks!

Two: Only one thing will reverse America's failed savings policy: a catastrophe! Past prosperity has lulled us to sleep. But that's coming to an end. The Brookings Institution warns that if we do nothing for the next 10 years, problems will get so bad that balancing the budget would require a 40% plus cut in benefits and spending, or offsetting tax increases. They also acknowledge that politically nothing will be done until a crisis explodes.

Three: What can you do? No news here. Ten studies and things keep getting worse. Yes, 33% listen and invest regularly. But the other 67% are oblivious, addicted to short-term consumption and immediate gratification. Solution? Save 10% or more.

I should be surprised at the 67%, but for some reason I'm not. The housing boom lulled many into a false sense of security. Watching double digit gains in home equity is nice and all, but a bust always follows a boom. These things move in cycles, and considering the size of this boom, the landing may be very hard.


Anonymous Anonymous said...

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7/21/2006 5:11 PM  
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7/23/2006 1:49 PM  

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