CNN "Your Money" Show? They were laughing jovially....

[Mike 03]

Only during elections do I tend to keep CNN on my satellite radio. Sunday I couldn't believe my ears at the crass, almost nonchalant advice being given on some program called "CNN Money" or "Your Money" that I'd never heard before.

They actually were chuckling and making jokes about the "hard times", and the core substance of their advice was to have "one year and preferably two years' salary on hand." And, mind you, the mood of this conversation was very light and fraught with gleeful chuckles and jokes, etc...

How many people do you know for whom it is a simple, almost trivial matter, to have the cash equivalent of one entire year of all living expenses tucked away in the bank? How about two years?

What if you are a family with two children? Do you know many families who have one or two years of surplus cash tucked away just in case?

I just had to vent. It made me so angry that people could be so lackadaisical when giving such unrealistic advice. Most people live one paycheck away from eviction or at the very least financial struggle. The conventional wisdom I'd always heard was to have three months' worth of cash on hand. One year? Two years? We are talking about money in the range of $80,000 to $200,000, just in some accessible account (not, presumably, a 401K)

Also, even if you are able to do this, where do we hide this money? Money market funds may not be all that safe. U.S. treasuries, bearing zero percent?

Eh, never mind. I just thought that advice was incredibly insensitive, especially delivered, as it was, with a bunch of jokes and laughing.

I ain't laughing about this.

[Taverner]

1. We saved a lot and we still never had 2 years salary

that's unrealistic, unless your last name is Hilton or Bush

[Mike 03]

3. Two years' is quite a lot

I might just barely be able to sqeak through, but that is in large part because I have stored food and supplies. But they made it sound like nothing could be more natural than to have $200,000 under the mattress in case of a rainy day. I'm sure some people do, but I'm sure a lot of people had strokes when they heard that. I know so many people who live month to month and do so in fear of receiving a pink slip at any minute.

[Taverner]

7. For us 2 years would be $400K

[wryter2000]

2. Reminds me of Ben Stein

His reaction to the fact that people were losing their pensions and might not be able to collect all their Social Security -- they should "make other plans."

WTF kind of (McCain air quotes here) "other plans" can a regular person make?

I guess I'll plan to convince Bill Gates that I had his love child.

[Mike 03]

4. Wow, did he really say that?

Incredible.

There was a story two weeks ago about an enormous amount of pension wealth being destroyed by the market collapse, and I did hear the same kind of thing on these "Feel Good Market Minutes". "Well, everything will be fine, you'll just have to put your retirement on hold, or come out of retirement. So what if you are eighty years old and just had a hip replacement? You can work another fifteen years can't you? Buck up, and be a patriot and a hard working Real American..."

I love that, though, the "Ben Stein Theory of the Economy." He actually applied for a job under my father at a Bank and was rejected. He had no real experience and submitted a terrible (I read it) screenplay to try to suggest he would make a great investment banker.

[wryter2000]

10. "Other plans" is a direct quote, I'm pretty sure

I'm not as sure what, exactly, he was reacting to. I'm pretty sure Greenspan gave the same response when asked what people would do if they didn't get their Social Security. They should make "other plans."

[dysfunctional press]

11. "make other plans"....oh, we have ben- we have.

and when the revolution comes, it'll be a thrill to watch you take your turn in the guillotine.

[GinaMaria]

5. Some people are so comfortable

they just don't get that not everyone lives at the same standard they do. It's a sign of a limited circle, imho. A broader circle or contact with people who are not like you, expands your view and understanding of others.

It's not funny, but I'm reminded of something I heard Michael Moore say about "Roger and Me". The scene about the woman who was raising rabbits and eating the meat, he remarked that a lot of people thought that was funny and he didn't understand why some audiences laughed at this. I think they thought she was eccentric and didn't realize this was her way of surviving poverty. They just couldn't relate to the dire circumstances this woman was in.

It's difficult to think about those in power having zero understanding of people's real problems. That should change soon. Hang in there.

[MrsBrady]

6. i just figured it up how much we'd need to save per month...

at about 3% interest, it would take us about 30 years to save up twice our salary.

adding a certain amount of money every month, without ever taking anything out.

[slampoet]

8. 2 years salary takes 10 years to save at least.

[MrsBrady]

9. it would take WAY more

money than we actually make in order to save up in two years

[earth mom]

12. We live paycheck to paycheck & it's impossible to save.

The jerks on t.v. have no worries obviously.

Looks like it's time to eat the rich. :grr: