Americans - fools of all fools, idiots of all idiots!!!!
Evidently, even the idea of growing old with no funds fails to bother America's wild-spending consumers. A study in today's WSJ shows that "Fewer Americans Save for Their Retirement." As far as "nest eggs," 19% have saved nothing, 8% have saved less than $8,000, 6% have saved $5,000 to $9,999, 10% have saved $10,000 to $49,999 and 8% have saved $50,000 to $99,000, 15% have saved over $100,000 and 27% don't know what they have saved.
In other words, 50% or half of Americans have saved $50,000 or less for their retirement. Russell Comment: It doesn't look as though they are going to retire, or if they do, it's to retire to poverty.
Meanwhile, the US consumer continues to buy, buy, buy -- with credit card credit zooming and savings nill. How much longer can the consumer continue to gorge on goods? Nobody really knows.
All in all, a very strange situation both in the US and throughout the world. Frankly, I've never seen anything quite like it.
I said many months ago when the bear market started, that "I believe the operative word is going to be INCOME."
Everybody is going to need income. This will be doubly, triply true as the trend of layoffs continues and as prices and the cost-of-living heads higher due to inflation -- and as companies attempt to raise prices due to the energy crisis and the general squeeze on profits.
It's ironic that in view of the need for income, savings are negative and stock yields are at their lowest level in history. As I said, it's a very strange situation. Russell. |
