"I am in no way disagreeing with you about the unemployment figures but four days before Christmas, I was near Atlanta,Ga and saw a massive traffic jam. People were out shopping for bargains I guess. I wondered, where is all that money going? There were a lot of people on the roads and it took me almost three hours to get out of that traffic jam to get home."
By Reginald Kaigler (DEMCAD)
Well, you are right. A lot of people were shopping for the holidays. But how many of them were using credit cards? How many of them were spending their last penny on useless electronics from third world countries?
As many of us know, low income Americans will shop for electronics and toys with their last dollar. But don't forget, just because people are buying crap, that doesn't mean that they are doing well. Americans will shop until they are absolutely penny-less. In fact, it's the insanity of overspending and debt that has led the country down the path of destruction in first place.
I know people who are over 25 years old, live with their parents, but unlike me, they have children. Many of these people have several children living in their home. They maybe living with a girlfriend who also have children. Some families consist of...
Only one of them has a full-time job. The mom maybe an office manager. The son may work at a retail store and his girlfriend maybe unemployed. Or maybe both the son and the girlfriend are unemployment. Yet, they sent all of their money on Christmas gifts and they're currently behind on all of their bills. No food storage. Barely any food in the house.
Now, although, this sounds ridiculous, it is not uncommon. And my fear is that when the economy implodes, a lot of people will be stuck in a vulnerable situation. People will not have food storage to feed all of the mouths that they have created. They won't have fresh water for their children. All of these guys with 5 or more kids by 4 or more women will realize that their modest child support payments won't cover much of anything. The poor single mothers with 3 or more kids will be suffer more than anyone.
America is in for a shocker. After decades of enabling irresponsible individuals to create kids that they have no means of taking care of it, we will face a situation where the government will not be able to help. Keep this in mind, while the average family spend 500 to 600 bucks on gifts, most Americans can even afford a $1,000 emergency. According to the National Foundation for Credit Counseling, only 36% of the 2,7000 Americans survey, said they would use their rainy day funds for an emergency.
"It's alarming... For consumers who live paycheck to paycheck -- having spent tomorrow's money -- an unplanned expense can truly put them in financial distress,"
Spokeswoman Gail Cunningham said.
Alarming, indeed. But at least their children received that XBOX 360 or Playstation 3, this Christmas! Let's hope this country doesn't face any type of crisis this year or millions of people will be left unprepared.
Most Americans can't afford a $1,000 emergency expense