Yes, you may have heard it but it still is an unjust system. Look it this way.
There is a person A - A millionaire with 1 million in stocks
There is a person B - With savings of 1000 in savings account in cash.
Stock market crashes due to recession or an economic shock. FED prints tons of money to protect TBTF (to big to fail types - mostly banks and cronies).
After economic shock:
person A becomes 2 Millionaire
person B has savings reduced to 500.
This is one of those fake things that happen in America:
A person becomes president with fake/stolen/created votes
Stock markets keep rising with fake/created/printed money in the market (you know why democratic presidents are good for stocks - they produce fake money I guess)
Media keeps creating fake news.
Like I have previous suggested, the true valuation is good everyone.
The US had a business economy for decades - more than a century actually - without this sort of manipulation. Now we struggle to grow GDP more than 2% a year - and the only answer on tap is to print trillions more.
The post - 2009 years were a combination of massive money printing and economy squashing regulation. That resulted in the election of Trump. If we double down on those policies - in a nation where at least a third of the people now believe the democratic process is corrupt - that doesn’t bode well for social stability going forward.
Transfer of wealth from poor to rich is only one of the side-effects (wealth inequality). Where everyone loses most is that the valuable economic resources are locked into inefficient and unproductive companies slowing down the creation of new and efficient. The US system is not much different from that of China that has a lot of Non-Performing Assets (NPA). US protects its NPAs too.
I thought this guy really hit the nail on the head when it came to Independent voters this election cycle and why it was definitely going to be a close race:
Futures indicate the market is underwhelmed. I wonder what they were expecting?
When another two trillion in newly minted dollars isn’t enough to perk things up I wonder if it is a danger sign?
Yeah, everyone was expecting it. I’m just amazed at the amount spent. We’re up to over 2x the government’s annual budget. Does anyone feel they are getting 2x more benefit from it? It’s really just given politicians an excuse to pass some spending to help people and a bunch of spending for pet projects.
I feel sorry for the working poor. The kind of people who are not exactly destitute and homeless, but who do not have enough to invest to stay afloat with the pace of the stimulus. I guess a $600 check will be some solace?
There are way simple rules to save for future. This is for $40-60k range too. Whoever earns whatever, they need to save 15% of their income in a year and invest in simple S&P funds. This is more effective than if they use that 15% in IRA/Roth funds where tax benefits are there. The wise person reads proper blogs and invest it.
Most of the low income earners are very short sighted and they spend their money next day in entertainment or other credit/borrow programs without proper planning. They do not even know what is financial planning for future.
This is not only low income earners, applicable to some high income too. Few years before, very intelligent programmer friend shared his details as debt went out of control. Gave few tips to him.
Simple concept, refinance primary home for 30 year fixed, cash out and pay all debts and never borrow anything further. It worked out very well, five years after when I met him again, he gave the feedback that he is sleeping well nowadays. Later he refinanced few times, without cash out, to bring the PITI to lowest now.
Maximize his 401k+IRA and invest it. He is cash surplus with good savings.
No need to feel sorry. Just wait patiently for the crash, it will come. Patient. Many stocks would be worth only 1% of current price. Good or bad will be dumped - margin calls, forced selling, more margin calls more forced selling, … You would read about many millennial multi-millionaires get decimated. During Dotcom bust, a typical Yahoo! millionaire net worth of $100M straight to a few hundred thousands. All employee options underwater, won’t be that bad this time, only RSUs, still worth something. Prepare a list of potentials. You don’t need a lot of money, a few thousand dollars will do. $1k to $1M, the more $k you have, the higher your eventual net worth. I need to repeat this again,
Yeah, re-sign a week before a new administration replaces you anyway. That’s a real stand up move. lol. How is this even news? They’re all losing their jobs next week anyway.
$600 doesn’t go out to the lowest of the working poor. I suspect that there’s a group of workers who don’t bother filing taxes. Not only are they out of work if they worked for the service industry, they won’t be getting the stimulus.
ready.