Why Americans Are Going Broke

Americans are progressively growing broke because the greater percentage of their monies are spent on "Consumer Oriented items" versus "Income Generated items".
I am specially trained in Finances,Economics and investments but is not teaching on that right now.
However, I think the real crooks in being broke - is Really the lack of Key, Key! investment information.This we can substantiate, and prove to you easily,because within the 2% Rich Americans populace are some rotten rich people, some even at age 16.Which simple means that it is the right /key information along with a decision that will in effect move you from the 98% to the 2% category even overnight.!
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Maybe people should start saving there own money for stuff they want rather that putting stuff on credit cards. Ist if you think about it, they are charging you to buy something that you cant really afford with the hopes that you will miss a payment, or pay the min payment for the next 3 yrs. @nd why pay someone to hold your money, or withdraw your money? Invest in a safe and put away your own loot, no bank fees, no late payment hassles. That is the banks main gig is to nickle and dime you to death with there legal mumbo jumbo. Perfect example....If you have direct deposit, and you have checks that YOU know will be covered when the bank opens they will put ALL of the checks through first.( so the 25$ bad check rule applies for not having sufficient funds) then put your direct deposit through and then ring up the charges you just racked up. Run the nonsuff chx through again and they hope you dont have enough to cover the second round of insuff. chx. and walaaa they just made atleast $100 on you. This is done thousands of times around the country and it rakes up a pretty good chunk of change. If you think about it how many average ppl switch banks for this exact reason, only to have it done again and again. Its the all mighty banks that are ripping us off with DEALS on loans then balloon the payment and wipe out ppls savings...Moral of the comment..Save your own loot and dont rely on the banks.

The day after Thanksgiving has come to be called "Black Friday," because the large amount of revenue businesses receive that day, as many consumers begin to do their Christmas shopping on the day after Thanksgiving, helping the balance sheets of businesses go from being "in the red" to being "in the black." ...BUT, if many of those consumers used CREDIT CARDS to make those holiday purchases on the day after Thanksgiving, creating DEBT that they would later have to begin paying off, then doesn't that mean that, if the day after Thanksgiving is "Black Friday" for businesses, then that SAME DAY is "Red Friday" for HOUSEHOLDS that GO "INTO THE RED" on that same day. ...But, the media gleefully highllights "Black Friday." SO, is it any wonder if some consumers take a similar devil-may-care attitude about spending?

We are not only living on borrowed money but we also living on other things borrowed.The clean air, clean water, nice weather and oil amongst others are being borowed from the future generations without us being able to pay back.

40 years ago consumer spending was about 30% of the total economy; back then it was manufacturing, investment, innovations, government fiscal restraint (a few times). But now consumer spending is over 60% of the economy. That is so dangerous towards the creation of a 2 class caste system that it is frightening. Government debt control is imperative! The dollar is now almost the lowest currency on the planet; things are going to start to get expensive from overseas and then other countries will once again pay our buildings, our banks, probably Ford, etc. with cheap dollars. Learn to speak Chinese or Farsi Baby if you want to survive OR get an arsenal.

True - set limits, but I consolidated all my debt at a great rate at CreditLoanApproved.com + cash back I would highly recommend them!

the government should actually set limits on how much you can borrow, depending on your income?
The citizens of the U.S. should set limits on how much the government can borrow, period! That is the single biggest contributor to the deflation of the U.S. dollar by 50% in the last decade. The U.S. economy would be far brighter if it did.

the government should actually set limits on how much you can borrow, depending on your income?
The citizens of the U.S. should set limits on how much the government can borrow, period! That is the single biggest contributor to the deflation of the U.S. dollar by 50% in the last decade. The U.S. economy would be far brighter if it did.

Comment: I am a 58 years old. My first heart attack, 100% blockage of my left coronary artery, that was 26 years ago, I have restarted my life 4 times due to additional episodes of health problems. If and when I and my wife receive a rebate from the Government it will be used to by down my debt. After all is said and done it is only my personal economy that counts. If more people took their own economy into account, we would not be in the shape we are today.

My wife and myself are retired. We have no debt and can use interest on our savings to supplement our social security. Recently the lowering of the prime rate effects our CD's. Also the government lowered the amount of I bond purchases from $30,000 to $5,000. They don't want us to save!

One key to spending is that your spending is some else's paycheck. We may be a bit overextended for credit, but a significant pullback can easily deepen any economic dip we have. Yes, there will always be those who overspend, but that is part of having 300 million people. As the author points out, many economies that have high savings rates are also very sluggish. China has a problem in that their citizens are so saving oriented that their domestic economy is suffering, and they rely too much on exports for growth. This makes them very sensitive to the US slowdown. Citi is now in the process of cancelling subprime credit cards in one of their divisions. This is a move that will help stabilize the economy without upsetting the economy too much. More banks should follow. In the meantime asking millions of people to suddenly change their spending habits is a bit unlikely to work. Asking the financial institutions to tighten their internal low end consumer credit policy is more liekly to work since this involves a relatively few professionals who are currently getting hurt due to their own policies. Since they are now getting hurt, we probably don't even have to ask. This is all part of the normal business cycle. By the way, proposing legal credit limits based on income is something thak cannot work. What about the people like me who live off investments and have no guaranteed income, and my unrealized capital gains are not even reportable, or others who have either non-guaranteed or non-reportable means of income? The problem appears to be more complex than even the author understands. There are also legal issues outside of consumer credit involved in regulation, such as personal privacy issues and over-regulating businesses. There is no one action that will get us through the current problems. A cutback in low end credit is a part of the solution, however. And the financial losses we are having will take care of that as the banks cut back on credit on their own.

Great interview. It's true I think. I reconsolidated all my loans into one at creditloanapproved.com and I donated my car (thanks to my wife) to AutoGiver.com (its a gas guzzler) We are going to buy a hybrid with the tax-credit from the donation. So, its a start for us. Seems like the future is brighter now. Good Luck!

If you are interested in this interview, definitely check out his book. Not only will it give you a lot more insight into the problem, it's loaded with solid advice and suggestions for improving things. And it's axctually fun to read. I agree--it is about time "we the people" get educated and take a stand!

Comment: FInally someone who recognizes that corporate America has indoctrinated the average JOE. Spend and make them wealthy while you go broke and live a life of debt. Why do you think that the FED lowered interest rates twice. THEY do not want AMERICAN CITIZENS TO SAVE and INVEST.
STAY STUpid is the essence behind this problem. IT is the reason individual are broke. THEY HAVE BEEN completely indoctrinated. BUSH's policies represents this economic feudalism.
EIGHTY percent of the world's capital is owned by a thirteen to twenty families. BUSH's are directly linked to these families. THE QUEEN of ENGLAND is part of this as well. IT IS IN THEIR BEST INTEREST TO KEEp people STUpid. INDOCTRINATE THEM TO Spend and manipulate the economy through the FEDERAL RESERVE to encourage people to spend. EVERY AMERICAN need to learn this RULE.
The middle class has been the victim of corporate indoctrination. Stay StuPid. They do not want you to double your money they want you to double their money. Every middle class family should be able to do compound interest problems in their heads. It can be learned in grade two. It is a very useful skill to have because it gives you a lightning fast benchmark to determine how good (or not so good) a potential investment is likely to be.
The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years. If the Middle Class can make better financial decisions it would have a profound affect on the economy.
The rule A stronger middle class will make the rich richer in the long run and helP uPlift the Poor.

Look and listen carefully. Is he avoiding detail, is he camaflouging his real agenda. Can he really make you believe that he will leave no child behind again, How many times can one nation be foolded. Think about all the bankrupt people sitting at home, those in debt, those without healthcare, and unable to afford education watching his speech. Their probably wondering how they could have been suckered into voting for this guy.They did not listen and we all know many of them voted for Bush in two thoudand four. OBAMA/.Hillary for president.
WHY CAN'T WE SEE THAT THE PeoPle Profiting from the war are haPPy with the status quo. WHo are these PeoPle,
Private Contrators who lobbied the RePublican adminstration
Cheney/ Halliburton who Provided billion dollar contracts to selected firms.
These caPitalists decided to unite and Profit in Iraq, Build a new economy in Iraq where the oil comPainies, caPitalists that suPPort the Bush Administration, War Profiteers and other Private comPanies could all make Billions at the tax Payers exPense. HERE"S THE proof, keep in mind this is just the tip ot the ice berg

Cheney's stock options which were worth $241,498 a year ago, are now valued at more than $8 million-- for an increase of 3,281% . Cheney has pledged to give the proceeds to charity. Cheney continues to receive a deferred salary from the Halliburton. He was paid $205,298 in 2001; $162,392 in 2002; $178,437 in 2003; and $194,852 in 2004.

Halliburton, has already raked in more than $10 billion for work in Iraq, and was handed some of the first Katrina contracts. The company has been criticized by auditors for its handling of no-bid contacts in Iraq, and there have been numerous allegations of over charging for services. Auditors found the firm marked up meal prices for troops and inflated gas prices in a deal with a Kuwaiti supplier. The company also built the American prison at Guantanamo Bay. "It is unseemly for the Vice President to continue to benefit from this company at the same time his Administration funnels billions of dollars to it. Lautenberg???
They even "pimped" our troops. ENOUGH IS ENOUGH
Do you think Bush and Cheney care that we are spending billions in IRAQ, NO. THis is why they hated the CLINTONS. THE CLINTON"S ACTUALLY USED TAX payer money to help the middle class and all AMERICANS.

Our country is too large to have all its affairs directed by a single government. Public servants at such a distance, and from under the eye of their constituents, must, from the circumstance of distance, be unable to administer and overlook all the details necessary for the good government of the citizens; and the same circumstance, by rendering detection impossible to their constituents, will invite public agents to corruption, plunder and waste." --Thomas Jefferson to Gideon Granger, 1800. ME 10:167
"I consider the foundation of the Constitution as laid on this ground: That "all powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States or to the people." [X Amendment] To take a single step beyond the boundaries thus specifically drawn around the powers of Congress, is to take possession of a boundless field of power, no longer susceptible of any definition." --Thomas Jefferson: National Bank Opinion, 1791. ME 3:146

We have been fooled by our own government and there is no way any Republican is going to win this election. THE Middle class has had it with all this Bin LADEN terrorist crap. WE are now scared of our own government more than we are of the terrorist because the decisions this government is making on our behalf is not in our best interests and it is killing us. The government is now dominating our civil liberties. They are giving the states millions for Real ID Cards. This is just the start of government intrusion. Combine this with the misuse of the Patriot Act and the future Plans of insurance comPanies and corporations to have full access to our personal records and we have a real crisis.
Credit Card companies have already started selling and sharing our personal information with the private sector. We really have to wake up and protect our constitution it is all we have to defend ourselves against interests that become too rich and powerful in this country. The government keeps expanding and is being predominantly controlled by special interest and lobbyist. The middle class is being weakened and our civil liberties are being threatened. Real ID Cards will not make "us safer" infacat terrorists can obtain fake ones and move about freely. The American people did not vote on Real ID Cards, we need a vote. Our constitution would have to be ammended in order for Real ID's to become legal. I do not know what has happened in Washington but it is getting out of hand. They know what they are doing is unconstitutional so they are trying to bribe the states by offering them money. I hope every state agrees with me and Prevents the federal govenment from imPosing and unconstitutional law. If the states allow the government to do this then they would have set a bad Precedent that could lead to further government violations.

FInally someone who recognizes that corporate America has indoctrinated the average JOE. Spend and make them wealthy while you go broke and live a life of debt. Why do you think that the FED lowered interest rates twice. THEY do not want AMERICAN CITIZENS TO SAVE and INVEST.
STAY STUpid is the essence behind this problem. IT is the reason individual are broke. THEY HAVE BEEN completely indoctrinated. BUSH's policies represents this economic feudalism.
EIGHTY percent of the world's capital is owned by a thirteen to twenty families. BUSH's are directly linked to these families. THE QUEEN of ENGLAND is part of this as well. IT IS IN THEIR BEST INTEREST TO KEEp people STUpid. INDOCTRINATE THEM TO Spend and manipulate the economy through the FEDERAL RESERVE to encourage people to spend. EVERY AMERICAN need to learn this RULE.
The middle class has been the victim of corporate indoctrination. Stay StuPid. They do not want you to double your money they want you to double their money. Every middle class family should be able to do compound interest problems in their heads. It can be learned in grade two. It is a very useful skill to have because it gives you a lightning fast benchmark to determine how good (or not so good) a potential investment is likely to be.
The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years. If the Middle Class can make better financial decisions it would have a profound affect on the economy.
The rule A stronger middle class will make the rich richer in the long run and helP uPlift the Poor.