61% of Americans are still living paycheck to paycheck

newwurldmn said:
I believe that America is the land of opportunity in that anyone can improve their socioeconomic standing but where you start has a huge determining factor on the distribution of your possible future states.
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I have met many people who have done quite well in life, but despite having well off parents who made the journey easier, will tell you that they are a totally self-made success. People never see the advantages that they have. They only see the disadvantages.
 
zghorner said:
inflation tends to benefit the wealthy class in that they hold all of the physical assets...which increase in value from inflation.
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It is not true at all.

First, rich or wealthy means the total networth. A lot of most of the wealthy people assets are financial assets. A couple who has a networth of $5MM may have a $1MM house, $200,000 personal assets like cars, boats etc. And the rest in 401K and liquid asset.

Inflation actually hurts both financial assets and real estate. Rich people get hurt when stock market drops and housing market tanks. Now the 30-year fix mortgage rate is 4%, much higher than the 3% we had just month ago.

Sure when inflation is 4% and your boat and piano increase value by 2%, you are still worse off.

Do not understand how people would have comments like the above....
 
DaveV said:
I have met many people who have done quite well in life, but despite having well off parents who made the journey easier, will tell you that they are a totally self-made success. People never see the advantages that they have. They only see the disadvantages.
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born on second and think they hit a double.
 
DaveV said:
Do you have any stats that show that. Most articles that I have ever read stated that the number one predictor of someone's success (in income terms) is how wealthy their parents were. For example this article states that smart poor kids will end up doing worse than not-so-smart rich kids: https://www.ctpublic.org/education/...ility-the-biggest-predictor-of-future-success
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I wonder how much weight that study put into the stability of the family. Like two parents versus a single parent.
 
RedSun said:
It is not true at all.

First, rich or wealthy means the total networth. A lot of most of the wealthy people assets are financial assets. A couple who has a networth of $5MM may have a $1MM house, $200,000 personal assets like cars, boats etc. And the rest in 401K and liquid asset.

Inflation actually hurts both financial assets and real estate. Rich people get hurt when stock market drops and housing market tanks. Now the 30-year fix mortgage rate is 4%, much higher than the 3% we had just month ago.

Sure when inflation is 4% and your boat and piano increase value by 2%, you are still worse off.

Do not understand how people would have comments like the above....
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The rich benefit from the debt they hold though so it's a wash.

Unless holding debt is their assets.
 
RedSun said:
It is not true at all.

First, rich or wealthy means the total networth. A lot of most of the wealthy people assets are financial assets. A couple who has a networth of $5MM may have a $1MM house, $200,000 personal assets like cars, boats etc. And the rest in 401K and liquid asset.

Inflation actually hurts both financial assets and real estate. Rich people get hurt when stock market drops and housing market tanks. Now the 30-year fix mortgage rate is 4%, much higher than the 3% we had just month ago.

Sure when inflation is 4% and your boat and piano increase value by 2%, you are still worse off.

Do not understand how people would have comments like the above....
More...

sure buddy...the S&P500 has been tanking since they've had the printers rolling 24/7 :rolleyes:x1000

SPY is @ $435 currently and was ~$337 pre covid crash. It isn't inflation that hurts the markets, its a rise in interest rates that follows.
 
Amun Ra said:
The rich benefit from the debt they hold though so it's a wash.

Unless holding debt is their assets.
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Can you tell me how the riches benefit from holding debts during inflation? They still paying $2,000 mortgage and house price starts to fall.
 
zghorner said:
sure buddy...the S&P500 has been tanking since they've had the printers rolling 24/7 :rolleyes:x1000

SPY is @ $435 currently and was ~$337 pre covid crash. It isn't inflation that hurts the markets, its a rise in interest rates that follows.
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Certainly it is the inflation that hurts the market. If you follow corporate earnings, you'll heard a lot of the CEOs complained about supply chains and inflation for their lower earnings.

Market foolishly believe Fed can fix the inflation by raising interest rate. This is a mirage. They need to fix the root causes.
 
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