Okay, what is cold hard cash? You say that real hard cash is still real hard cash, and that the average Joe still uses real hard cash (as opposed to credit or cash flow?).
The following are some basic statistics from the Fed and from cardweb and another site or so , and some I wouldn't know know how to look for the actual statistics.
1)The average American owes over $9000.00 in credit card debt. That figure is misleading because some people (myself included) use CC alot, but never pays interest, pays it off at the end of every month. Still, about half of the people who do carry debt, carry a 'median' debt of about $2200.00. Between 75% & 80& of all Americans (not just citizens) use credit cards.
All of the above would apply to the average Joe.
2)I can not find a source for this, If you can, please help. I would think that most Americans either carry a mortgage Or pay rent, one of the two. My mortgage is paid off, but most people, I would think (but can't cite stats) either carry a mortgage Or pay rent. Rent or mortgage implies use of credit.
the above would apply to the average Joe.
3) Over 82% of americans carry a cellphone (I do not). Cell phone usage generally implies a monthly plan (my wife carries a pre-paid cell phone for emergencies)which implies credit.
the above would apply to the average Joe.
4) I couldn't find a stat for what percentage of Americans presently have an auto loan . I'll guess it is probably at least 50 % since the average length of car note is now five years. (my autos were bought with cash). I did find this "The typical buyer in 1975 borrowed about $17,000, adjusted for inflation, to buy a new car. By 2006, that figure had climbed 63 percent, to more than $27,000. ". Remeber that both figures are in today's dollars, having been adjusted for inflation. This takes significant credit.
the above would apply to the average Joe.
5)Most people have homeowners or renters insurance (I pay mine a year in advance, the longest they will allow), most people have auto insurance ( i pay mine six months in advance, the longest they will allow). Both of these, especially when paid as monthly payments, do imply credit. And, I'm not even going to try on health or life insurance --far too complicated.
the above would apply to the average Joe.
Now, I could throw in other misc., such as monthly utilities, etc., but my point is that I don't see how "average Joe" is less dependent on credit. I don't see how "cold , hard cash" is something for which Average Joe uses to his benefit , realtive to the upper tier of society.
And, even if average Joe does use cash, every paycheck, to pay his bills on time, and buys nothing unnecessarily; how does that help him when inflation comes into the picture? If his job or pension continues to pay him $X,XXX every paycheck, but the price of most things increase, not because the product is scarcer, but because the dollar is worth less; how does Joe benefit.?
what happens when the plant, factory, gov't , etc. for which average joe works starts laying off people. It is not the high flyers, who worry in this situation, it is average Joe.
I'm not arguing. I posted how some applies to me, to show that , as an individual, it would benefit me , if you are correct. Please would someone show me where I am wrong.
I simply do not see how average Joe benefits. Instead, I see the same people who were reckless before, being able to slide through, with some discomfort. And, I see Average Joe being crushed. .............bobford
http://moneycentral.msn.com/content/Banking/creditcardsmarts/P150744.asp
http://www.gearlog.com/2007/11/us_cellphone_penetration_tops.php
http://blog.cleveland.com/business/2008/03/americans_today_take_nearly_tw.html
--- On Sat, 10/4/08, Wendy <crazygardens AT verizon.net> wrote:
From: Wendy <crazygardens AT verizon.net>
Subject: Re: [Homestead] Throwing the Gun
To: homestead AT lists.ibiblio.org
Date: Saturday, October 4, 2008, 2:41 AM
You know, I must be going senile, but I totally agree again
with James. His
"throwing the gun" analogy is a very accurate
one. Also interesting to note
is that when the markets began to shake, the price of oil
began to drop.
Gas at our local station fell 20 cents over night. I still
stand that this
crumbling of the top level of our economic structure is
actually a good
thing. It has been top heavy for a long time. It will
point out how many
people depend on the illusion that cash flow creates wealth
or that the
imaginary money contained in stock value is somehow real.
Your real hard
cash is still real hard cash. It is also interesting to
note that President
Bush (or anyone else in Washington) could not seem to come
up with a real
answer when pressed on how the crumbling of the big
financial companies
would affect Common Joe on the streets. That is because
Joe still uses
cash. These next few months should be interesting.
Wendy
> You know the scene in the swashbuckle, adventure, or
war movie. The
> protagonist is defending against overwhelming odds,
certain doom, he draws
> his pistol
> and begnins shooting. Bang, bang, bang, ..,. click,
click .... then in an
> impulse of desperation, he throws the gun at the
rapidly advancing enemy.
>
> That's what's just happened. As many,
moi-self included, have opined,
> those
> thrice weekly announcements that the Fed was injecting
$60B then $100B
> dollars
> was the first few rounds, then they forgot to count
the shots as the last
> bullets in their gun were discharged at AIG, Fannie,
and Freddie.
>
> The bailout passed and signed today it the frantic,
last ditch,
> ineffective,
> and panicked throwing the gun at the enemy.
>
> -----------------------------
>
> Now, financial reporting is a curious thing. The rise
and fall of stock
> values seems to have no basis in reality and the most
idiotic news sends
> the
> numbers widely up and down. Even with no dog in the
fight, it's amusing
> to read
> them in times like these. And they've gotten to
the point that they go
> something like this: "Stocks soar today as CEO
finds 37 cents in the
> pocket of his
> spare pants." "Stocks plunge today when
company vice president learns the
> Wendy's coupons he was going to use for lunch have
expired!"
>
> The most amusing have been the analyses that appear in
groups of four like
> this:
>
> Stocks higher on the fact that A didn't happen.
> Stocks lower on the fact that A didn't happen.
> Stocks higher on the fact that A did happen.
> Stocks lower on the fact that A did happen.
>
> Yeah.
>
> Recently it has been this heinous bailout bill. Over
the past week these
> comments acutally appeared on some of the financial
news sideboards:
>
> Stocks higher today on prediction that bailout will be
defeated.
> Stocks lower today on prediction that bailout will be
defeated.
> Stocks higher today on prediction that bailout will be
passed.
> Stocks lower today on prediction that bailout will be
passed.
>
> Todays tag was a jewel. "Stocks sharply lower on
economic news inspite of
> bailout."
>
> Yeah.
>
> Fact is the economic news all broke early this morning
and DOW was up more
> than 300 points in the afternoon. Then the very
moment the bailout was
> signed
> into law, it began to drop losing 486 points by
closing.
>
> The big IF has been, what if the bailout doesn't
"work"? Of course it
> can't
> "work", it is a PR job to try to keep the
crumbling economy intact until
> after
> the election. And it isn't working. We
(collectively) have now shot all
> our
> rounds and today we threw the gun at the enemy.
>
> If McCain had any savvy, which apparently he decidedly
does NOT, he would
> have stuck with his previous guns of 'no
bailouts' and squarely opposed
> this
> bill. Then when the economy sank, he could say
"See, I told you, I told
> you I am
> the maverick, I'm the only one who stood firm
agaisnt this and now
> seeeeeee....."
>
> But he didn't. Flippin' idiot!
>
> Now we ride out a depression or else the government
does what it did in
> Germany in the '30's, what Argentina did, what
Brazil did, and what
> recently
> Zimbabwe did ... we keep bailing out this and that
until the currency
> hyper inflates
> and, like Zimbabwe, we start issuing $100B dollar
bills and it takes fifty
> of
> them to buy a loaf of bread.
>
> </HTML>
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>
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