Observations on life

Time for Millennials to wake up

This is a quote from a Marketwatch article. The young millennial is not saving; she says there is no future because of climate change and she says capitalism doesn’t work.

I was in college when the financial collapse happened, and I remember the intense dread and panic around me as people who played by the rules of the system and did everything right lost all of their savings,” she says. “What will prevent that from happening again? The system doesn’t work.”

This is what you get from the barrage of political rhetoric. That and an apparent lack of history knowledge including the many crisis Americans have endured and overcome, in large part because of capitalism.

“Did everything right and lost all their savings?” Guess what, anyone who lost all their savings did everything wrong. They probably got out of the stock market in a panic at the low point thereby missing the next ten years of growth. Also, it’s doubtful she has much knowledge of the role government played in creating the subprime lending fiasco that lead to the mortgage shenanigans by lenders or that borrowers ignored what they could afford or that some homeowners over leveraged by using their homes as ATMs.

The 21st century seems to be the new dark ages.

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3 replies »

  1. Or, they are smarter and more logical than I am – having figured out the long run “game”.

    Perhaps they see clearly the day in their long term future when everyone will have to pay taxes on social security benefits and when the income-based surcharges on medicare part B and D will be so high as to equal/exceed the cost of coverage itself. They may ask, why save enough to expose yourself to those taxes and premiums. Instead, perhaps it is better to enjoy life now, and become the beneficiary of “guaranteed income” and “medicare for all” promises.

    Why save for the long run – knowing that Bernie and Pocahontas/Mataoaka Liz, et.al. are scheming to tax away any wealth you might accumulate.

    Instead, sit back, accumulate debt, live for today, and remember to vote in every election for the idiots who would take wealth from the productive and give it to welfare recipients, while waiving accumulated debts, etc. Once that pattern emerges, I know that I will spend every last penny before I pass it to the feds in taxes. Oh, please forgive me for the taxes that I failed to pay!

    This is the crap you hear everyday on the campaign trail.

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  2. There was a lot of blame to go around in the events leading up to 2008. Government lending agencies, not the whole US government, certainly contributed. But so did many financial institutions that ignored rational banking guidelines and sought profits over integrity. People who got out of the market at the time paid dearly. The rest of us have slowly recovered but lost much in opportunity gains. I personally have had to stay on the job a few extra years. That being said, you can never save enough for retirement. But, if you start early, you will certainly make your retirement life better. One thing for certain, shun politicians who wish to deregulate. There may be short term advantages to some but the vast majority of people could suffer later.

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    • Shun politicians who force banks to lend money to unqualified homeowners and demand that Fedy and Fannie Mac buy those mortgages. These politicians also demand that the federal government guarantee student loans that no bank would be willing to lend under normal sound lending practices. Millennials can’t get past the narrative that it was capitalism’s fault to hear the truth that it was government policies that fueled the financial crisis. They place too much faith in the government because the politicians are offering free stuff and stealing from the rich instead of millennials earning it themselves. They live in the now and want instant gratification instead of saving for tomorrow.

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