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01/27/2011

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BJ

I've noted they always seem to gloss over the fact that spending is up more than income. Where is the money coming from if incomes aren't up equal to spending?

If you are already in survival mode, only paying for food and shelter, does total measures of inflation apply to you, or only inflation of food and energy prices?

Yes, Washington, and the Fed, is desperate for another consumer driven debt bubble, to replace theirs, before it pops.

John D

I have to say, though, that when I drive around town everyone has a fancy newer car. People that can't afford them have hefty car payments so that they can drive the latest SUV or such. I think there is an instant gratification factor involved in all of this lack of savings. Plasma screen TV's, high cost cell phone plans, and pay channels on cable are now considered necessities by many people.

BJ

John D: When I spoke to a credit counselor they said you would be shocked by what some folks considered "essential" expenses. If I hadn't had my expenses documented, they indicated they wouldn't have believed me. They increased my "expenses" significantly, when calculating my financial situation and necessary pay.

I've noted a lot of new vehicles on the road as well, especially the Prius, which is the result of government debt, and a high percentage of government employees, who make on average $5 more per hour than the rest of us. Most of us can't afford the cost of the battery replacement, let alone the vehicle. Lots of gas guzzling SUVs too. They act as if we wont be seeing $4 a gallon gas again anytime soon.

Bring on the debt, we are addicted to it, just can't get enough.

I live in a college town, which means the town is addicted to student loan debt. They are hoping students and their parents never face reality. Or the taxpayer passes out "free" college degrees to everyone.

Chris in Chicago

I would agree. How many people can actually afford a tahoe at 50k plus the cost of gas and lets face it do they really need it to drive around the city? No,but the auto manufacturers have planted it to there heads that they do.

Living in Chicago i read a interesting article by none outher then the insurance industry several years ago. It's stats showed that suv's
were involved in twice as many accidents as passenger cars when chicago recieved a 1-3 inch snowfall.

Scott

Rather silly graph if you ask me. It's not as though the "contributions to financial assets" were ever real.

Gail

Chris, could that be that proportionately more SUV's venture out in a snowstorm and smaller cars stay put?

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