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alstry (35.34)

Can Anyone Retire Anymore????

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8

April 10, 2008 – Comments (8)

A confluence of adverse forces – notably falling wealth and rising inflation – is making many Americans less confident about their well-being in retirement.

On Wednesday, an annual survey of Americans recorded the largest-ever plunge in retirement confidence in 18 years of polling.

It's not uncommon for long-term confidence to ebb and flow with changes in the economy, but the sharp drop reflects larger factors led by rising medical costs and an unusual plunge in home values.

http://news.yahoo.com/s/csm/20080410/ts_csm/aretirement

NEW YORK (AP) -- U.S. retail gas prices extended their record run Thursday, adding to the pain consumers feel every time they fill up. Experts predict prices will rise even higher as peak summer driving season approaches.

http://biz.yahoo.com/ap/080410/oil_prices.html

ATLANTA (AP) -- Another day and hundreds more flights grounded. The financial toll and loss of goodwill among travelers from the debacle that spread further Thursday beyond American Airlines' massive cancellations could be severe -- on an industry already reeling from high fuel costs.

http://biz.yahoo.com/ap/080410/airlines_passengers.html

This week's flight cancellations by American Airlines are likely to spread to other U.S. airlines in the weeks ahead as federal regulators step up a by-the-book review of carriers' compliance with maintenance and safety orders issued in recent years.

http://biz.yahoo.com/ap/080410/airline_safety_analysis.html

WASHINGTON (AP) -- Lenders are dropping out of the federally backed student loan business in droves, fleeing an environment squeezed of cash because of the credit crunch.

http://biz.yahoo.com/ap/080410/student_loan_squeeze.html

WASHINGTON (AP) -- The U.S. trade deficit unexpectedly increased for a second straight month in February, raising concerns that the economy's one standout performer could be starting to flag.

http://biz.yahoo.com/ap/080410/economy.html

Transportation shutting down.  Getting More Expensive to Drive or travel anywhere.  Flying is becoming more difficult and expensive everyday.  And NOW the Federal Government is grounding airplanes as four airlines shut down last week?  Truckers are pulling off to the side of the road as Diesel crosses $4.00 per gallon.  Try looking at fuel surcharges for shipping goods.  No wonder UPS warned of further deterioration in March.

Our Budget Deficit is tracking at a Historical High just as our President is leaving office.  Our trade deficit  is increasing again.  Our dollar is crashing.  Inflation is heating up and jobs are being axed by the thousands everyday.

The wealth of Americans is eroding daily.  Housing  values collapsing.  Bond values collapsing.  Dollar collapsing.  Not only that, the price of almost everything we pay for is going through the roof.  Airline tickets, food, fuel, transportation save bicycles and walking(unless of course you decide to eat or drink durning such activity). 

 And the government is telling us to wait to see if the stimulous package works?  Are we nuts?  Credit is tighening everywhere.  If you are a student trying to get a loan.  A business trying to expand its line of credit.  A city trying to issue a bond.  It is harder or more expensive for practically anyone or anything trying to raise funds.

And the Fed's solution?  Increase Regulation!!!!!!!!!!!!!!!!!!!!!!!!!!!!!  You gotta be Freaking kidding me.!!!!!!  Increasing regulation is shutting down our economy.

WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke said Thursday that regulators must move ahead on ways to prevent a future financial crisis from occurring even as they battle one that threatens to plunge the country into recession.

http://biz.yahoo.com/ap/080410/bernanke_credit_crisis.html

Wealth Contracting.  Credit Tightening.  Jobs being lost.  Transportation becoming more difficult and expensive.  Budget Deficit Increasing.  Dollar Crashing.  Prices Going Though the Roof.  Wages stagnant and/or contracting.

Pretty soon, the only two retailers in America might be Costco and WalMart.  If jobs keep getting cut and wealth contracting...one of those two might not make it.

AND PEOPLE ARE WORRIED ABOUT RETIRING????......HOW ABOUT MAKING IT TO THIS SUMMER WITHOUT FALLING INTO A VERY DEEP DEPRESSION IF CREDIT CONTINUES TO TIGHTEN AND BUSINESSES SHUT DOWN!!!!!!!!!!!!!!!!!

 

8 Comments – Post Your Own

#1) On April 10, 2008 at 6:15 PM, alstry (35.34) wrote:

The Treasury Department says the federal deficit through the first half of this budget year is at an all-time high, underscoring the pressure the budget is coming under as the economy slumps.

http://ap.google.com/article/ALeqM5ijDA5bgxiHlTvS_r-SSjskS1Tq1wD8VV5CU00

How can credit tightening and increasing regulation improve a slumping economy?

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#2) On April 10, 2008 at 6:40 PM, alstry (35.34) wrote:

In this week's Digital Dirt, we address the foreclosure issue. Specifically, successes that builders and distressed-asset investors are having as they pick off abandoned subdivisions....

Local real estate investor O.J. Buigas is the man behind the $13.5 million deal. He immediately slashed sale prices by roughly 40% and put the homes back on the market.

http://www.bigbuilderonline.com/industry-news.asp?sectionID=363&articleID=686194

40% lower house prices is great for the new purchasers of homes.  The problem is that the tens of millions of people who purchased homes in the last 4 years are now underwater.

Potentially we could be looking at $5 to $7 Trillion dollars of First Mortgages, Second Mortgages, and HELOCs underwater.

Can anyone explain how on earth this is going to be worked out?  Maybe we should bail out builders so they can keep recklessly building specs?

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#3) On April 10, 2008 at 6:57 PM, alstry (35.34) wrote:

Is Obama Right?

"The heavy hand of special interests has again had too much influence on this bill," Obama said. "Special interests have insisted on putting in unnecessary tax breaks for the profits enjoyed by home builders during their boom years, and on keeping out a change to our bankruptcy laws that would remove preferential treatment for mortgage lenders."

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#4) On April 10, 2008 at 7:14 PM, Imperial1964 (97.76) wrote:

I can retire.  In fact, I can retire way early.  ...Just not yet.

It's not as easy as saving 10% of your income and relying on social security anymore.

You can't count on the S&P to return 10% per year anymore.  Too much of those returns have been multiple expansion and not GDP growth.

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#5) On April 10, 2008 at 9:08 PM, DarkHonor (54.87) wrote:

Our debt, both personal and governmental, is staggering and our economy is also fairly shaky, but from an investing standpoint shouldn't we welcome both of these things.  Our national debt is weakening the dollar, the weaker dollar is increasing inflation since we're in import country, and inflation is scaring consumers, since our economy is based on consumption not production our markets are in the dumps.  Now on the surface this would seem bad, but from an investing standpoint it's awesome.  Stocks are cheap and likely to stay that way for a while, provided you believe that while consumers are scared they won't actually panic, which means the market won't recover, but also won't drop much farther than it is.  Anyway, that's my admittedly simple take on the whole thing. 

 I say it's time to start breaking out the green thumb with a vengeance!

It is important to note that I'm only 26, and just started investing for retirement over the past year.  I barely had any money in the market when it started dropping, and I won't be pulling the money out for at least a few decades.

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#6) On April 10, 2008 at 9:08 PM, dwot (65.79) wrote:

Yup, ability to retire is going to be challenging...

I suspect the traditional own your own home to keep costs down isn't going to work as well.  The cost of running the home and property taxes will be proportionately higher...

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#7) On April 10, 2008 at 9:53 PM, EScroogeJr (< 20) wrote:

"otentially we could be looking at $5 to $7 Trillion dollars of First Mortgages, Second Mortgages, and HELOCs underwater.Can anyone explain how on earth this is going to be worked out? "

This is going to be worked out very easily. You will stay underwater for a while. You will not be driving a brand new Porche payed for with ATM dollars, but your grocery store, your pharmacy and your gas station will still serve you as usual. Soon you'll realize that the world does not come to an end because alstry lives in a cheap house :)

 

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#8) On April 10, 2008 at 11:54 PM, alstry (35.34) wrote:

You miss the point again and again.

In Florida RIGHT NOW, there are retirees that own their home free and clear.  FREE AND CLEAR.  They have no housing expense but taxes, insurance, and mainenance.

The cost to operate their home plus the rising costs of non housing related expenses are forcing many retirees to sell their homes to pull out the equity to live on.

Now what were you saying about a cheap house?

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