Recovery at risk as Americans raid savings

[Huey P. Long]

Recovery at risk as Americans raid savings
By Jilian Mincer and Jonathan Spicer

NEW YORK | Tue Jan 17, 2012 8:50am EST

NEW YORK (Reuters) - More than four years after the United States fell into recession, many Americans have resorted to raiding their savings to get them through the stop-start economic recovery.

In an ominous sign for America's economic growth prospects, workers are paring back contributions to college funds and growing numbers are borrowing from their retirement accounts.

Some policymakers worry that a recent spike in credit card usage could mean that people, many of whom are struggling on incomes that have lagged inflation, are taking out new debt just to meet the costs of day-to-day living.

American households "have been spending recently in a way that did not seem in line with income growth. So somehow they've been doing that through perhaps additional credit card usage," Chicago Federal Reserve President Charles Evans said on Friday.

"If they saw future income and employment increasing strongly then that would be reasonable. But I don't see that. So I've been puzzled by this," he said.
--
full-
http://www.reuters.com/article/2012/01/17/us-recovery-risk-idUSTRE80G08320120117

[Huey P. Long]

1. Bad news sinks fast here these days. Oh well, it will all unravel soon enough. -eom

[RC]

2. We do not need "just jobs",

we need Living-Wage-Jobs.
Not minimum wage 25/30 hours a week jobs. Full time 40 hours a week, Living-Wage-Jobs that a family can live on and save money too.
You remember, like we had up until bu$h?

[woo me with science]

3. K&R And not just monetary savings. Everything people own is being taken.

Watch TV, and your gut will sink to see how many of the commercials are aimed at those in economic distress, offering them ways to liquidate what few assets they have left in order to survive.

Reverse mortgages.
Payday and car title loans.
Offers to buy your gold and jewelry.
Pawn shops.
Places that will give you cash lump sums on annuities.


Everything people own is being systematically taken. All assets, including paid off family homes, family jewelry and treasures, saved money, and other things that previous generations used to hand down to children. People are relinquishing these things just to survive.



Remember the recent OP about new legislation that will deny support services like food stamps to anyone with more than $2000 in assets. Every day it becomes clearer how serious and thorough this looting is.

We must occupy.

[Rex]

4. What else can they do? When you run out of money you dip

into your retirement account or go without food or heat. I am sure banksters will find a way to make extra money off of them.

[Huey P. Long]

5. Americans raid savings, putting recovery at risk

Americans raid savings, putting recovery at risk
Workers pare back contributions to college funds, more borrow from retirement accounts

http://www.msnbc.msn.com/id/46025535/ns/business-stocks_and_economy/

==

msnbc site has over 400 comments

[SammyWinstonJack]

6. +1. nt