HSBC Bank has reported some interesting facts in a new survey. The results are that many in the income rich category are not saving. (Income rich is considered a household making $250,000 or more per year) From my experience, most Americans put a much higher emphasis on income rather than wealth. People in this country have been conditioned to spend money now and worry about the future latter. Regardless of your income level, you will have a tendency to spend all that you make and then some unless you make […]

The federal reserve just came up with some sobering statistics of a “wealth gap” which is becoming more pronounced as time goes by. It appears that younger generations may not do as well as their parents generation going forward. This could have some very significant impacts going forward. What is ironic is that the younger generations feel somehow that they are entitled to have as much or more than their parents. Consider the following: The growing divide between the rich and poor in America is more generation gap than class […]

Last week I was writing a bit about a new threat in the form of interest rates. Long term rates have been in decline for almost 27 years straight. Things are changing, which will have quite an effect on the economy this time around. Why is this so? Generally if rates were to rise to around 7-10% it would make the cost of borrowing higher and may cause the economy to slow down, but this time it is truly different. The difference is the leverage in the economy. Easy, cheap […]

American men in their 30s today are worse off than their fathers’ generation, a reversal from just a decade ago, when sons generally were better off than their fathers, a new study says. The study, the first in a series on economic mobility undertaken by several prominent think tanks, also says the typical American family’s income has lagged far behind productivity growth since 2000, a departure from most of the post-World War II period. The findings suggest the up escalator that has historically ensured that each generation would do better […]