Posts Tagged ‘finance’

“‘If I were given $1 million’
According to the respondents, here are some of the things people would do if they suddenly received an influx of cash…

  • 54% of respondents would spend it

According to Charles Schwab, Americans are paying attention to their friends’ personal-finance choices. Sixty percent of people said they’ve wondered how others on social media were able to afford things like expensive trips… And out of a variety of factors (including family, friends, and co-workers), social media was reported to have the worst influence on money management…

A whopping 59% said they live paycheck to paycheck, and 44% carry a credit-card balance or struggle to keep up with payments, according to Charles Schwab.” -The Crux

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“…the world has been binging on debt like never before.

The International Monetary Fund reported last month that total nonfinancial-sector debt has ballooned to an all-time record of $152 trillion… while the global debt-to-GDP ratio has also soared to an all-time high of 225%, up from 200% just 14 years ago.

Worse, we’re seeing record debt at the government level, the corporate level, and the consumer level (via auto and student loans, in particular). The boom in corporate borrowing is especially concerning…

U.S. companies have already borrowed $1.4 trillion this year to date, according to data firm Dealogic. This is on pace to shatter last year’s previous all-time record of $1.5 trillion.

Unfortunately, most are using this money to refinance existing loans… buy back stock and pay dividends… and finance expensive (and often questionable) mergers and acquisitions. This will do little to help the economy. But it greatly increases leverage… and risk.” -Justin Brill

Far, far, far too much money – mind-boggling amounts – has been borrowed….  Students have borrowed $1 trillion for college.…  Roughly 90% of GM car buyers finance their purchases.  And as recently as 2014, 83% of their loan book was subprime, with a shocking amount categorized as ‘deep subprime’.  Deep subprime is essentially people who don’t have a credit rating or people who are currently in bankruptcy.” -Porter Stansberry

It’s good to have nice things and to get an education, but these things must be done responsibly and according to need.

One key feature of the private reserve strategy is that one builds a pool of funds from which to finance many purchases in life.  The benefit is the interest paid returns to one’s own pool instead an alternate finance company.

“Capitalism is constantly burying its mistakes and discovering tomorrow. Cronyism, on the other hand, keeps you in the past. It is today and yesterday trying to stop tomorrow from happening…. The future is where new wealth is created. When you try to stop or twist the future into the shape want, you prevent this wealth from ever happening. Cronyism depends on the credit bubble…. Cronies owe money.  They borrow money.  They depend on borrowed money for their budgets, their spending, their bonuses, their portfolios, their welfare checks, and their special privileges.  They all depend so heavily on borrowing that few of them – whether in academia, media, business, finance, or government – can see the truth… let alone speak it.  They are all paid not to see it.  And if they do see it, they keep their mouths shut.” -Bill Bonner