I think more so than the consumer mindset the fact that earnings are flat is the bigger reason for all of this.

(10-12-2015 11:43 AM)Fo Shizzle Wrote:  

(10-12-2015 08:06 AM)QuestionSocratic Wrote:  Saw this today:

Quote:An estimated 45% of Americans have (retirement) accounts with less than $25,000, according to the Employee Benefit Research Institute,

Not a surprise to me. All around me I see people spending money like it grows on trees.

It does. If they use paper money and not credit cards.

It grows on trees when you don't earn it, and the government just supplies it for you.

(10-11-2015 02:11 PM)Fitbud Wrote:  

(10-11-2015 01:30 PM)dfarr Wrote:  

(10-11-2015 12:41 PM)Fitbud Wrote:  I didn't know anything about the stock market. I just used to send 100 a month to some group and they handled everything. I'd get a monthly statement but I had no idea what it meant. In 2007, they told me to take it out or I would lose money so that's what I did. It was something like 25k.

I really hope that was just an investment account and not a retirement account.

Yes, it was just an investment account. my retirement is taken care of through TRS.

Ok, that's a little better. But remember Warren Buffet's quote, "“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”" In other words when others are selling, it's probably a good time to buy.

(10-12-2015 11:43 AM)Fo Shizzle Wrote:  

(10-12-2015 08:06 AM)QuestionSocratic Wrote:  Saw this today:

Quote:An estimated 45% of Americans have (retirement) accounts with less than $25,000, according to the Employee Benefit Research Institute,

Not a surprise to me. All around me I see people spending money like it grows on trees. When I ask about what they are doing about retirement?...they look at me with a blank stare. When I discuss this stuff I can tell by their input that they have no clue what I am talking about.

They are going to turn to the govt and then complain.

Looks like, at least from this survey, that Millennials are of the right mindset concerning debt. However, that first graph below is frightening.

Survey: Millennials seriously can't wait to wipe out debt

I've always felt weird about earning money by interest.


Proverbs 28:8

Whoever multiplies his wealth by interest and profit gathers it for him who is generous to the poor.

(10-13-2015 09:48 AM)Fitbud Wrote:  I've always felt weird about earning money by interest.


Proverbs 28:8

Whoever multiplies his wealth by interest and profit gathers it for him who is generous to the poor.

Islam forbids interest. I personally don't have an issue with it, but it's been irrelevant for nearly a decade now anyway.

I've always been for a return of usury laws.

We used to have them, and we should again.

(10-13-2015 09:49 AM)VA49er Wrote:  

(10-13-2015 09:48 AM)Fitbud Wrote:  I've always felt weird about earning money by interest.


Proverbs 28:8

Whoever multiplies his wealth by interest and profit gathers it for him who is generous to the poor.

Islam forbids interest. I personally don't have an issue with it, but it's been irrelevant for nearly a decade now anyway.

Interest isn't the problem, usury is. How else will a bank make its money? Or any business dealing with credit? Problem with the latter is that they charge you for the goods and then charge you for selling it to you on credit, a double whammy.

(10-13-2015 12:46 PM)olliebaba Wrote:  

(10-13-2015 09:49 AM)VA49er Wrote:  

(10-13-2015 09:48 AM)Fitbud Wrote:  I've always felt weird about earning money by interest.


Proverbs 28:8

Whoever multiplies his wealth by interest and profit gathers it for him who is generous to the poor.

Islam forbids interest. I personally don't have an issue with it, but it's been irrelevant for nearly a decade now anyway.

Interest isn't the problem, usury is. How else will a bank make its money? Or any business dealing with credit? Problem with the latter is that they charge you for the goods and then charge you for selling it to you on credit, a double whammy.

Well, they are supplying two products, the actual good and the money to purchase the actual good. Makes sense to be compensated for both products. From my understanding, usury is just interest above legal guidelines.

Most of this 62% probably has no savings because they're financing everything they buy. You know.....being stupid with their money.

"Nuffin in savings, but I got me a Benz on a lease for $500/month after puttin' $6,000 down at signing and furniture I payin' off for $200/month."

Idiots.

Not only that Shifty but stretching the amount of months to pay off a new car. 5 years versus the usual 3.

(10-13-2015 10:26 PM)olliebaba Wrote:  Not only that Shifty but stretching the amount of months to pay off a new car. 5 years versus the usual 3.

I'd say 5 years is the norm; however, I have seen 6 and 7 year car loans, which is crazy.

(10-13-2015 09:51 AM)HeartOfDixie Wrote:  I've always been for a return of usury laws.

We used to have them, and we should again.

Please explain.

If you are referring to a guy named Guido who holds your gambling markers, I believe those laws are already on the books.

If you are referring to what a bank charges on credit card debt, there are no meaningful laws. However, banks will set rates based upon your credit worthiness as part of their free market operation. Crappy credit=high rates.

There has been some interest in regulating payday loans but these suffer extremely high default rates. Some have argued that limiting payday rates will hurt the poor most. That position degenerates into a philosophical debate.

(10-13-2015 03:24 PM)shiftyeagle Wrote:  Most of this 62% probably has no savings because they're financing everything they buy. You know.....being stupid with their money.

"Nuffin in savings, but I got me a Benz on a lease for $500/month after puttin' $6,000 down at signing and furniture I payin' off for $200/month."

Idiots.

This .....

and then add in the mortgage that they will never pay off until they are in their 70's. And their Equity Line and credit cards with about 20k revolving balances.

Folks living the American Dream alright!!

(10-14-2015 07:57 AM)South Carolina Duke Wrote:  

(10-13-2015 03:24 PM)shiftyeagle Wrote:  Most of this 62% probably has no savings because they're financing everything they buy. You know.....being stupid with their money.

"Nuffin in savings, but I got me a Benz on a lease for $500/month after puttin' $6,000 down at signing and furniture I payin' off for $200/month."

Idiots.

This .....

and then add in the mortgage that they will never pay off until they are in their 70's. And their Equity Line and credit cards with about 20k revolving balances.

Folks living the American Dream alright!!

No worries, when it all crashes and burns, gain, those folks will just complain and blame everyone else for their own stupidity.

(10-14-2015 08:28 AM)VA49er Wrote:  

(10-14-2015 07:57 AM)South Carolina Duke Wrote:  

(10-13-2015 03:24 PM)shiftyeagle Wrote:  Most of this 62% probably has no savings because they're financing everything they buy. You know.....being stupid with their money.

"Nuffin in savings, but I got me a Benz on a lease for $500/month after puttin' $6,000 down at signing and furniture I payin' off for $200/month."

Idiots.

This .....

and then add in the mortgage that they will never pay off until they are in their 70's. And their Equity Line and credit cards with about 20k revolving balances.

Folks living the American Dream alright!!

No worries, when it all crashes and burns, gain, those folks will just complain and blame everyone else for their own stupidity.

Seems a lot of that 'stupidity' helped fuel the housing boom and thus the economy. Lot of folks got rich off it.

(10-14-2015 10:29 AM)gsu95 Wrote:  

(10-14-2015 08:28 AM)VA49er Wrote:  

(10-14-2015 07:57 AM)South Carolina Duke Wrote:  

(10-13-2015 03:24 PM)shiftyeagle Wrote:  Most of this 62% probably has no savings because they're financing everything they buy. You know.....being stupid with their money.

"Nuffin in savings, but I got me a Benz on a lease for $500/month after puttin' $6,000 down at signing and furniture I payin' off for $200/month."

Idiots.

This .....

and then add in the mortgage that they will never pay off until they are in their 70's. And their Equity Line and credit cards with about 20k revolving balances.

Folks living the American Dream alright!!

No worries, when it all crashes and burns, gain, those folks will just complain and blame everyone else for their own stupidity.

Seems a lot of that 'stupidity' helped fuel the housing boom and thus the economy. Lot of folks got rich off it.

Yep, seeing it now with car loans and education debt as well. Folks will never learn.

(10-13-2015 10:26 PM)olliebaba Wrote:  Not only that Shifty but stretching the amount of months to pay off a new car. 5 years versus the usual 3.

I don't think 3 is really normal now, nor has it been for a while. Four always seemed like the normal term to me, but now with cars costing so damn much, 5 and 6 year loans are very common.

My sister just bought a car with a 6 year loan payment. Fortunately no interest on it though as long as she pays it off in time.

I told her originally to buy a used car that was 3-4 years old. It only cost about $5,000 less, but had an 8% interest rate, so buying the new one made sense. The dealer told her that a lot of lenders were now charging really high interest rates for used cars to push people to new cars.