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For us mere mortals, it is important again to focus on that chart. $46,000 does not go a long way. In a recent Census report there are 110,000,000 households in the United States. What this data tells us is that 55,000,000 households are living on $46,000 or less a year. Let us assume this is a married couple with 1 child. Let us run the numbers:
I ran the numbers for a state with no state income taxes, Texas. A family at this level is only bringing in $3,215 a month. The national median home price peaked around $200,000. So let us assume this family purchased the median home:
5% down payment: $10,000
Mortgage 30-year fixed (6.5%): $1,200
Taxes and Insurance: $333
PITI: $1,533
Right off the bat, this family is spending 47% of their net pay on a median priced home. We didn’t even account for any pre-tax retirement account investing. Given the recent stock market performance and the loss of $50 trillion in global wealth, maybe that wasn’t such a bad idea. The bottom line is the average American family is being squeezed from every angle. What we need is a focus on jobs and our economy, not bailing out banks since that defeats the entire purpose. The average American family is struggling getting by and when they hear about these billion dollar handouts, they can’t help feeling left out.
My Daughter was forced to vacate a rental condo she had lived in for six years, there was no government help in dealing with the horrendous moving costs, her landlord was delinquent on his mortgage and taxes. The landlord had many of these condos, he'd built them in years past with the expectation of selling them for a profit, the price was too high for the buyers to remain, they defaulted and he rented them out.
It all went downhill when some of his renters were layed off and couldn't pay the rent. His safety margin was disappearing, it all came down like a landslide, unfortunately my Daughter was a casualty of the mortgage/credit default, ARM loan, debacle. The guys who got help were those same guys who benefitted most by the entire scheme when it was making them rich. Misery? Yes, the losers are miserable, but that doesn't negate the fact that a lot of American's got rich on the back of the misery that they heaped upon those less fortunate than themselves. This will be the legacy of America, a nation that allowed a few to eat the lunch of many, aint it great?
It used to be if you took a risk and failed... you were out of the game.
Simple concept and easy to understand.
Seems some are "Too Big" to fail and we are forced to bail them out...
I think for most of us... we just take things one day at a time.
absolutely! you can only do that because it seems that every time you turn around there is some new scheme being concocted by someone.....
there is no way that the "too big to fail" people EVER want to eat those losses, so they will hide them as long as they can, while they come up with new plans to try and alter the economic landscape.
A $200k home in Texas would be closer to $4k in property taxes a year.
That being said people earning $50k a year don't buy a $200k home. Your numbers are screwed. Homes in Texas are cheap compared to the national average, you can buy a decent stick built home in most areas of Texas for $70k-$90k.
Things are just not right anywhere ,still, I don't care what the numbers "say" out there,etc....
I just spoke to a friend today who's husband has been with his company for 15 years now (which is long considering things in the manufacturing sector...), he had a good paying job (low 6figures) and he was told that their "numbers" are suffering, everything is down,production,sales,etc... so they are going to start chopping salaries,starting at the top and working their way down. That is the way I suppose it should be done, but we aren't talking about people who got rich off of anything. These are hard working people who went to college,worked their way up the ladder and are now being told that their salary is going to be cut by 55% with no compensation.
55% is significant obviously and many people with his company will have to severly alter their lifestyles and some probably will struggle paying their mortgages.
They were also told that they were going to be taking away several of their paid personal days,again,not a tragedy, still, an alter to their lifestyle.
In the meantime though, we are still watching the auto industry who have been bailed out, pay their employees compensation for loss of income, they are all being paid for their 2 weeks off with the shutdowns that occur during the holidays and they are still being allowed to keep their exuberant amount of vacation time that they have!
We know people who were off the entire summer due to the TLO's that were PAID and now have the entire month of December off-again PAID!
How does this continue and on who's money are they getting paid with?
People have had to go on food stamps,loose their homes,etc... due to loss of income and still, these people are living as though nothing is happening around them.
Still, they are being offered compensation for their loss of income,still they are working OT .
Unless I am missing something, this just doesn't make sense to those of "us" who are struggling in this supposed recovering economy?
Things are just not right anywhere ,still, I don't care what the numbers "say" out there,etc....
..
Unless I am missing something, this just doesn't make sense to those of "us" who are struggling in this supposed recovering economy?
You are not missing anything. This recovery is not for us..it's for Wall Street and Corporates.
My advice is to adjust your living standards because they will not be going back to what they used to be.
Things are just not right anywhere ,still, I don't care what the numbers "say" out there,etc....
I just spoke to a friend today who's husband has been with his company for 15 years now (which is long considering things in the manufacturing sector...), he had a good paying job (low 6figures) and he was told that their "numbers" are suffering, everything is down,production,sales,etc... so they are going to start chopping salaries,starting at the top and working their way down. That is the way I suppose it should be done, but we aren't talking about people who got rich off of anything. These are hard working people who went to college,worked their way up the ladder and are now being told that their salary is going to be cut by 55% with no compensation.
55% is significant obviously and many people with his company will have to severly alter their lifestyles and some probably will struggle paying their mortgages.
They were also told that they were going to be taking away several of their paid personal days,again,not a tragedy, still, an alter to their lifestyle.
In the meantime though, we are still watching the auto industry who have been bailed out, pay their employees compensation for loss of income, they are all being paid for their 2 weeks off with the shutdowns that occur during the holidays and they are still being allowed to keep their exuberant amount of vacation time that they have!
We know people who were off the entire summer due to the TLO's that were PAID and now have the entire month of December off-again PAID!
How does this continue and on who's money are they getting paid with?
People have had to go on food stamps,loose their homes,etc... due to loss of income and still, these people are living as though nothing is happening around them.
Still, they are being offered compensation for their loss of income,still they are working OT .
Unless I am missing something, this just doesn't make sense to those of "us" who are struggling in this supposed recovering economy?
First off I'd like to know what the pay will be after the 55% cut? Seems as though a company couldn't cut by that much and expect too many to show the next day unless the remaining 55% is still a living wage. I know what you are driving at but some people are organized in the sale of their labor, like pro athletes they get paid whether the boss loses or wins. all in all, it's the fat cat's and not workers that benefit from government largess'. Don't worry too much about the Auto workers though, it can't last, and then you'll feel better when they too are on the soup line...........
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