It appears that the new democratically controlled congress is back to its old self. The propensity is for democrats to raise taxes. In the past, the idea is to create a surplus for a rainy day. But lately both houses now days tend to spend more money than ever before. It would be good for members of congress to enroll in the John Commuta. Last week, House Democrats passed a budget blueprint that would wipe out existing tax cuts while mostly ignoring the rising costs of the alternative minimum tax. […]

The recent boom in housing prices has put many retirees in a great position to cash in on their home equity after leaving the working world behind. It may also be prompting people still planning their retirements to expect that their “home sweet homes” will turn out to be a sweet retirement investment. That may not be such a sure thing. As a recent Fidelity Research Institute Report points out, the historical record shows that relying on your home to do more than house you in retirement can be risky. […]

It is interesting to learn who is it that is lending the US government money to cover it’s own intereste payments on it’s debt. Apparently the government owes itself the most. As of last June (the latest complete breakdown available), the biggest holder of Treasury debt was the U.S. government itself, with about 52 percent of the total $8.5 trillion in paper that’s out there. Most of the government’s holdings are massive savings accounts for programs like Social Security and Medicare.. That’s leaves a little over $4 trillion in public […]

It is interesting to observe that even some of the wealthy are beginning to falter when it comes to avoiding the Jones’ consumption style. It appears that many of them are now trying to keep up with the super rich.  Consumption and debt increases are becoming more common amongst the affluent. In fact, some sociologists and economists say the rise in wealthy people’s debt stems in large part from the growing pressure among the elite to keep up with richer peers. The biggest disparities in wealth today are among the […]