Comments on: American Savings: Americans Save an Average of $392 Per Year. Total Consumer Debt is over $2.5 Trillion. The Dark Knight of Debt. http://www.doctorhousingbubble.com/american-savings-americans-save-an-average-of-392-per-year-total-consumer-debt-is-over-25-trillion-the-dark-knight-of-debt/ How I Learned to Love Southern California and Forget the Housing Bubble Thu, 09 Feb 2012 06:16:36 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: occdude http://www.doctorhousingbubble.com/american-savings-americans-save-an-average-of-392-per-year-total-consumer-debt-is-over-25-trillion-the-dark-knight-of-debt/#comment-20537 occdude Thu, 24 Jul 2008 07:19:19 +0000 http://www.doctorhousingbubble.com/american-savings-americans-save-an-average-of-392-per-year-total-consumer-debt-is-over-25-trillion-the-dark-knight-of-debt/#comment-20537 Well you hit the nail on the head Doc. We dont save. But I think the more interesting question is why. The reason is we as an economy aren't really producing enough in the aggregate to provide for our needs, ergo the lack of savings. Talk to people, are they producing goods that are consumable in this country? Or more importantly in another country to exchange for their goods? Take a look around your domicile. See anything made in USA? Theres your answer why we don't save. You need to make something to be able to save it. Most people now-adays are in the services industry which is OK as long as you have goods being produced. You cant eat a service or wear it, you need a balance. Alot of people have government jobs, are accountants, lawyers, medical professionals. Who are actually paying these peoples salaries if not the innovators, capitalists, industrialists, inventors etc? Our notion at a fundamental level is flawed of what constitutes a successful economy or career. We right now, are inflating a truly massive credit bubble because of our emphasise on services and the credit to support it. There will be a truly massive contraction of credit to counter-balance the inequity. Everything makes sense when you evaluate the total sum of the economy, and are not distracted by the "trees versus the forest" ie. property prices which are only part of the total systemic problem. Asset price deflation needs to occur in the property, bond and stock markets. This will be camouflaged by governments reaction which is to inflate the monetary stock. Only with a significant correction in the aforementioned asset prices, cant you expect a truly cathartic correction. And a normal functioning economy. Well you hit the nail on the head Doc. We dont save. But I think the more interesting question is why. The reason is we as an economy aren’t really producing enough in the aggregate to provide for our needs, ergo the lack of savings. Talk to people, are they producing goods that are consumable in this country? Or more importantly in another country to exchange for their goods?

Take a look around your domicile. See anything made in USA? Theres your answer why we don’t save. You need to make something to be able to save it. Most people now-adays are in the services industry which is OK as long as you have goods being produced. You cant eat a service or wear it, you need a balance.

Alot of people have government jobs, are accountants, lawyers, medical professionals. Who are actually paying these peoples salaries if not the innovators, capitalists, industrialists, inventors etc? Our notion at a fundamental level is flawed of what constitutes a successful economy or career.

We right now, are inflating a truly massive credit bubble because of our emphasise on services and the credit to support it. There will be a truly massive contraction of credit to counter-balance the inequity.

Everything makes sense when you evaluate the total sum of the economy, and are not distracted by the “trees versus the forest” ie. property prices which are only part of the total systemic problem.

Asset price deflation needs to occur in the property, bond and stock markets. This will be camouflaged by governments reaction which is to inflate the monetary stock. Only with a significant correction in the aforementioned asset prices, cant you expect a truly cathartic correction. And a normal functioning economy.

]]> By: Roberto http://www.doctorhousingbubble.com/american-savings-americans-save-an-average-of-392-per-year-total-consumer-debt-is-over-25-trillion-the-dark-knight-of-debt/#comment-20528 Roberto Thu, 24 Jul 2008 04:59:56 +0000 http://www.doctorhousingbubble.com/american-savings-americans-save-an-average-of-392-per-year-total-consumer-debt-is-over-25-trillion-the-dark-knight-of-debt/#comment-20528 Hey all: One thing that is hidden under the surface is student loan debt. I went thorugh undergraduate without borrowing anything....I worked, saved, and had generous parents who helped me. HOWEVER, I then went to graduate school for four years. After graduation, I couldn't find a job. I did work, but seldom made enough to pay anything significant on my student loans. A few years ago, I worked hard, had some luck and started to make a decent living. I have been paying student loans for over 2 years now. My monthly STUDENT LOAN PAYMENT is about $2,100. I paid very little for five years and my debts grew to well over $100k. I now hear stories of people getting out of graduate school with $200K+ in student loan debt. If they mess up like I did for several years, their debt would increase to $350k or so. How is an attorney or doctor going to afford a $4k or $5k a month student loan payment? Remember, student loan interest is NOT DEDUCTIBLE against your income. Also remember that you need to pay for your housing, food, insurance, and other daily expenses. How can you afford to start a family? I suspect that a LOT OF STUDENTS are getting in WAY OVER THEIR HEADS with student loan debt. Remember, student loans are not dischargeable in bankruptcy. I certainly got in over my head, but I am recovering and getting it paid off. Roberto Hey all:

One thing that is hidden under the surface is student loan debt.

I went thorugh undergraduate without borrowing anything….I worked, saved, and had generous parents who helped me. HOWEVER, I then went to graduate school for four years. After graduation, I couldn’t find a job. I did work, but seldom made enough to pay anything significant on my student loans. A few years ago, I worked hard, had some luck and started to make a decent living. I have been paying student loans for over 2 years now. My monthly STUDENT LOAN PAYMENT is about $2,100. I paid very little for five years and my debts grew to well over $100k. I now hear stories of people getting out of graduate school with $200K+ in student loan debt. If they mess up like I did for several years, their debt would increase to $350k or so. How is an attorney or doctor going to afford a $4k or $5k a month student loan payment? Remember, student loan interest is NOT DEDUCTIBLE against your income. Also remember that you need to pay for your housing, food, insurance, and other daily expenses. How can you afford to start a family?

I suspect that a LOT OF STUDENTS are getting in WAY OVER THEIR HEADS with student loan debt. Remember, student loans are not dischargeable in bankruptcy. I certainly got in over my head, but I am recovering and getting it paid off.

Roberto

]]> By: Dr B http://www.doctorhousingbubble.com/american-savings-americans-save-an-average-of-392-per-year-total-consumer-debt-is-over-25-trillion-the-dark-knight-of-debt/#comment-20520 Dr B Thu, 24 Jul 2008 01:17:38 +0000 http://www.doctorhousingbubble.com/american-savings-americans-save-an-average-of-392-per-year-total-consumer-debt-is-over-25-trillion-the-dark-knight-of-debt/#comment-20520 Other things to do with the stimulus check: 1) Make a donation to Al Qaeda 2) Buy some coke 3) Buy a handgun and use that asset to acquire more wealth Ok, FBI, I was just kidding, no need to investigate. What I really meant was: 1) Make a donation to the RNC 2) Buy some Coors 3) Buy a shotgun and shoot your buddy in the face Sorry for any misunderstanding. Other things to do with the stimulus check:
1) Make a donation to Al Qaeda
2) Buy some coke
3) Buy a handgun and use that asset to acquire more wealth

Ok, FBI, I was just kidding, no need to investigate. What I really meant was:
1) Make a donation to the RNC
2) Buy some Coors
3) Buy a shotgun and shoot your buddy in the face

Sorry for any misunderstanding.

]]> By: Hmmmmm http://www.doctorhousingbubble.com/american-savings-americans-save-an-average-of-392-per-year-total-consumer-debt-is-over-25-trillion-the-dark-knight-of-debt/#comment-20505 Hmmmmm Wed, 23 Jul 2008 22:14:17 +0000 http://www.doctorhousingbubble.com/american-savings-americans-save-an-average-of-392-per-year-total-consumer-debt-is-over-25-trillion-the-dark-knight-of-debt/#comment-20505 Could someone clarify what is counted as "savings " in these stats? Does this include retirement funds and stuff like that or just money a person physically moves to a savings account each month. Could someone clarify what is counted as “savings ” in these stats? Does this include retirement funds and stuff like that or just money a person physically moves to a savings account each month.

]]> By: Tyrone http://www.doctorhousingbubble.com/american-savings-americans-save-an-average-of-392-per-year-total-consumer-debt-is-over-25-trillion-the-dark-knight-of-debt/#comment-20462 Tyrone Wed, 23 Jul 2008 03:29:04 +0000 http://www.doctorhousingbubble.com/american-savings-americans-save-an-average-of-392-per-year-total-consumer-debt-is-over-25-trillion-the-dark-knight-of-debt/#comment-20462 I'm just a lowly renter, but I can say this... I save a few times more than the $397 average savings per year... <b>EVERY WEEK!!</b> I’m just a lowly renter, but I can say this… I save a few times more than the $397 average savings per year…

EVERY WEEK!!

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