Forget about what you read in the newspapers. We all know that news is fake. Ditto for financial news. Do you really think America is doing that well? Use your eyes and look around you. I doubt very much anyone of you is living in a bubble.
Do you see that homelessness in America is soaring? Why is that? Do you really believe it is the homeless person’s fault on why they are living in the streets, sleeping on the sidewalks and taking craps in building hallways? Think these people are just useless drunks and drug addicts? Homelessness is on the rise because the rents are too high and their pay is too low. The cost of insurance is skyrocketing. Most everything today is valued too high and over priced. Do you really think people can survive on the new minimum wage of $15 an hour? Not if they are slowly being replaced by kiosks and AI (Artificial Intelligence). In other words, people are slowly losing their jobs or are slowly being paid with paper printed money that is worth less and can no longer cover the higher costs of almost everything on this planet.
Housing today is overpriced. What’s the point of selling your now expensive home or condo only to turn around and buy another overpriced home or condo? Do you actually think you can take your ‘profits’ and turn it into more income by investing in an overpriced stock market with overpriced stocks and bonds? Interest rates may be coming down which in turn has made mortgages affordable BUT you are buying a home or condo or property that is over priced. Has anyone forgotten about the 2008 housing crisis? Apparently, they have. What are you going to do when the housing bubble bursts? Yes you’ll have a low interest mortgage on a house but that house isn’t worth what you paid for it. Duh?
Side Note: quickest group becoming homeless is the elderly. (click here)
Take a look around you. What do you see? Do you see store after store closing, laying off thousands of their workers because, as ‘they’ claim everyone is buying stuff on the internet? Do you really think that’s true? Why isn’t any news operation following some of those laid off workers? Where are they now? Did they find another job? Say as a UPS driver since everyone is ordering online? Perhaps they are working at Amazon right now, at that infamous $15 an hour? See what happens to them as stated above.
There were 7,000 store closings, so far in 2019. That’s way more than the number of stores that closed in 2018. Big brand names, such as The Gap, CVS, Dress Barn and Pier 1 (click here) are closing their doors and laying off thousands and thousands of workers. Where are all these workers now? Have they found other jobs? That pay more or just as much? Or are they learning to adjust to live on less?
Have you noticed that more fast food operations, such as McDonald’s have installed kiosks that can take your order, pay your bill and deliver your product at window #7. There’s no need to speak to a human being anymore or a counter person. AI’s got your order. Your best bet working for McDonald’s now would be as a computer programmer or technical systems repair person. That’s only if and when the system can’t repair itself. Don’t wait up for the call to come in any time soon.
Look at the overpriced costs of automobiles. Did you ever think an SUV or pick-up truck would cost $70,000? How about the costs of appliances, such as a dishwasher, washer, refrigerator, dryer? Thanks to this new thing called ‘tariffs’ your every day appliances just became unaffordable. Unless you take out a low interest loan. Two years ago, did you ever hear of the word ‘tariff’? What new words will be coming up next week, next month, next year?
There’s a reason why most of you have no idea what I am talking about. Most people don’t. That’s because most people, through no fault of their own, have no idea what financial responsibility is. It’s NOT taught in school. None of your friends will talk about money. Your parents didn’t know what fiscal responsibility is or was, so how can you blame yourselves? You’re taught at school by teachers who are mostly poorer than a church mouse. No fault of theirs either. They have no idea what it takes to run a company or meet a weekly payroll. They just know that money is evil. So are the big corporations. Well, look around you. Use your eyes. Those big corporations are taking over the planet and you know nothing about it because it’s never talked about, written about or discussed. Financial literacy is NOT taught in schools for a reason. That’s how ‘they’ control you into being incompetent worker bees for your whole entire life. ‘They’ become rich while people like you become poorer.
Some fortunate people, like myself, have to learn about money the old fashioned way: we fail at it. Then and only then do we learn the valuable lessons of proper money management. I’ve got something that isn’t taught anywhere. It’s called fiscal experience. Unfortunately, it took me a lifetime to learn it but there it is. As I stated, about myself, in a previous post (click here):
Shall we ask survivors, such as myself, what it was like going through The Stock Market Crash of 1987 (I lost everything I had and had to file bankruptcy. I didn’t have the fifty cents needed to go over a bridge to borrow $50 from a good friend of mine), The 1995 Recession (seniors were eating dog and cat food. Thankfully, I wasn’t a senior then BUT I do remember how difficult it was putting food on the table. Very embarrassing), The Dot Com Disaster of 2001 (I lost my computer business at Christmas time and did not have the money to buy a Christmas tree. We cut a bush down off the side of a road. I hung my cookie cutters on the tree as ornaments. I started selling my possessions to make ends meet) and finally, the fabulous Great Recession of 2008 (by this time I smartened up: I had no debt, no mortgage, no car loans, no credit cards and friggin’ cash in a bank! ABSOLUTELY NO INVESTMENTS WHATSOEVER WITH WALL STREET. We breezed through the Great Recession with nary a scar nor a bad night’s dream)
My financial experience over the years has alerted me to watch for red flags. They’re everywhere people. But we are too wrapped up in euphoria to know. Everyone keeps hinting at an upcoming recession because we know, at least I hope we know, that things can’t stay up forever. Our economy is slowing. There’s the yield curve inversion, which is a true indication that a recession is coming. What is a yield curve inversion?
Treasury Bonds are down. No more 3% to 4% interest on bonds or CDs. Many retirees rely on high CD rates, me included, as a way of making safe income during our retirement years. Well, that security is on its way out and it’s gone, gone, gone. What’s a retiree to do? Usually they take on riskier risks because they need and they want to make up the deficit. Good luck with that folks. Easiest and quickest way to lose your money during the neediest time in your elderly life. Social security is on its way to bust in the next few years. Hope you’re NOT depending on Social Security to tide you through your Golden Years? Ditto for your preposterous 401K retirement funds (which are invested in over inflated stocks all the while as you are losing money paying pesky investment fees)? And puh-leeease don’t tell me you’re not worried about your bank collapsing, because after all you have your cash invested in FDIC banking institutions.
How big will the next crash be? We all should know by now that markets always crash. What are you going to do? How will you be prepared? Or unprepared? Don’t look towards me because I’m not giving out any financial advice. Why should I? You have to learn your own route to solvency and financial well being. Look for educators or teachers who speak from experience. Not from something they learned in a book or a classroom. I don’t care if you have a PHD in Financial Literacy. You’re nothing more than a joke. You have no idea what you are talking about. Experience in THEE best teacher on the planet. Look for “educators” who have been there, done that and have successfully come out better on the other side AND MAINTAINED THEIR SOLID FINANCIAL PLANNING REGARDLESS OF WHAT THE GLOBAL ECONOMY IS DOING. Because it’s all fake news, people. It’s all fake news.