This is one of those times in history were the shift of money from poor to middle income families, to the
very wealthy has been at it's highest rate or shift. The Housing bubble ie. Federal bailout of Bear Sterns/JP Morgan, Fanny Mae....etc...
How do you suppose the federal Government is backing all that junk paper they bought? US TAX DOLLARS!!
And the crap part of it is, these mega investment banks are being allowed to re-purchase the paper they sold off for pennies on the dollar.
A bunch of billionaires just got rich in a few weeks of our tax dollars.
In addition, every lost dollar of yours, is the gain of a dollar from soveriegn wealth (foreign investment) in
commodities, fuel, real-estate.
And all of this is no wonder due to the fact that 90% of all American housholds are living in massive debt.
We are a country of, "I want it now even if I can't afford it" mentalities.
Did you know:
73% of all foreclosed homes and commercial properties in the US right now are being bought by foreign investors (India, U.A.E.(yeah Arabs)
China, Italy). Sovereign Wealth funds from India last year yeilded 65% gains, year before that 57%.
I don't care if you make $100,000 a year or $32,000 a year, if you think you will make more money next year when you get a raise, you are wrong. Standard raises now are in the 3-5% range. Inflation fluctuates between 3-4%. Couple this with your current debts of anywhere between 5-30% and you're losing money. No doubt about it.
The only way for Americans to climb out of this downward spiral is to pay off credit card debt, save money to purchase things in cash,
Invest any money you can in anything (401K, Roth, IRA, ETF's) that returns a higher rate than current inflation.
Become more knowledgable about investing. Even low paying jobs can do well if you're smart with your money.
IT IS THE ONLY WAY TO SECURE YOUR FINANCIAL POSITION!!!!!!!!
them ALL.
