Thursday, February 1, 2018

POP GOES THE WEASEL

Pop goes the weasel, the meaning behind is pawning ones stuff to buy food and drinks and other essentials..  Despite all the rhetoric that the economy is doing very well the simple truth for 80% of Americans its simply not true.  See indebtedness is at all time record levels. What they don't take into account is Interest rate doubling from historical lows which will double borrowing costs, including city, state, mortgage costs and discretionary income, which is what is left over after disposable income.   Let's break it down further you get your paycheck minus taxes, social security, insurance is your net. Now you have mandatory expenses like rent, food, utilities, gas and insurance for your vehicle, maybe a car payment then what ever is left over is your discretionary income.  Now the top 10% incomes have expanded but for the bottom 90%  your income has gotten ate up by inflation, so what recovery are they talking about.  Since 2000 wages have gone nowhere and I'd be willing to bet we can go back another 10 years too.  The demographics of our nation has changed also, with baby boomers approaching retirement or already in retirement, plus birth rates have steadily gone down, simply put it's not enough people to pay into the system.    Most of the gains we have seen is false it's in credit and debt with fancy accounting tricks.  We now try to keep up with the Jones, everyday you are bombarded with saying you need credit, you need debt.  But the BIBLE says " The rich rule over the poor, and the borrower is servant to the lender."  So there you go to work everyday to make others rich and to pay bills.  Simply put it's not enough cash flow to float all types of debt, thus everyone is hunting for your cash because of their insatiable appetite to spend for all types of things.  WARNING IF YOU HAVE AN ADJUSTABLE RATE MORTGAGE CHANGE TO FIXED RATE MORTGAGE NOW.  POP GOES THE WEASEL...




No comments:

Post a Comment