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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsRecovery at risk as Americans raid savings
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.
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http://www.reuters.com/article/2012/01/17/us-recovery-risk-idUSTRE80G08320120117
Huey P. Long
(1,932 posts)RC
(25,592 posts)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
(32,139 posts)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
(65,616 posts)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
(1,932 posts)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/
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