If a major economic crisis hit us right now, the vast majority of Americans would be extremely vulnerable. According to a recent CareerBuilder survey, 40 percent of all Americans live paycheck to paycheck all of the time, and 77 percent of all Americans live paycheck to paycheck at least part of the time. This is why there was such a problem with foreclosures during the last recession. When millions of Americans suddenly lost their jobs many of them quickly found that they were unable to pay their mortgages because they had no financial cushions. For decades, Americans have been trained that it is okay to get into debt up to their eyeballs and live paycheck to paycheck because times will always be good and jobs will always be easy to get. Unfortunately, times have changed and many (Read More...)
Most Americans still appear to be operating under the delusion that the “recession” will soon pass and that things will get back to “normal” very soon. Unfortunately, that is not anywhere close to the truth. What we are now witnessing are the early stages of the complete and total breakdown of the U.S. economic system. The U.S. government, state governments, local governments, businesses and American consumers have collectively piled up debt that is equivalent to approximately 360 percent of GDP. At no point during the Great Depression (or at any other time during our history) did we ever come close to such a figure. We have piled up the biggest mountain of debt that the world has ever seen, and now that gigantic debt bubble is beginning to pop. As this house of cards comes crashing down, the economic pain is going to become almost unimaginable.
Already, things are really, really, really bad out there. Unemployment is at shockingly high levels. Foreclosures and personal bankruptcies continue to set new all-time records. Businesses are being shut down (Read More...)