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Two Thirds Of Gen X Households Have Less Wealth Than Their Parents Did At The Same Age

Tyler Durden's picture




 

While the endless propaganda regurgitated from every media outlet will have the average American believe (inbetween trips to collect and cash unemployment checks) that in the first quarter the economy crashed due to weather, or that millions of Americans are bailing on the labor force - oddly enough, most of those Americans are in in the 16-19 age group: retiring early, right?...

... the reality is far, far simpler: the myth of the US economic recovery is nothing more than a lie of mythic proportions.

Take Generation X: those millions of Americans born between 1960 and 1980 who in a truly recovering and thriving economy would be at the forefront of career opportunities and of wealth creation. Instead, as an extended Bloomberg profile of Gen X shows, there has hardly been a generation in worse shape than Americans between their mid-30s and mid-40s... perhaps with the exception of Gen Y, and the Millennials of course.

So propaganda aside, what is life really like for a group of people that in a parallel universe, one with a truly vibrant, growing economy, should have never been better? Sadly, "life" as it is lived and not shown on TV makes one wonder if X stands for Exterminate.

Take Vera Johnson from Seattle. Vera, one of the several Gen-Xers profiled by BBG, "is barely making do, let alone saving for retirement."

“I try to remain in the present moment and not live in fear of the future,” said Johnson, who has neither retirement savings nor a college fund for her two children. “My property is underwater, the properties around me are underwater, I’m not building equity in my home.”

 

The 45-year-old almost lost her home to foreclosure in 2010 after the housing-market collapse in the worst recession since World War II. She embodies the financial challenges facing America’s Generation X, those born between the mid-1960s and 1980, which lags behind other generations in building assets.

 

When their working years end, Gen-Xers might have to live on just half of their pre-retirement income, compared with 60 percent for the Baby Boom generation, Pew said last year.

 

“Generation X is at this really critical historical spot,” said Diana Elliott, a research officer in financial security and mobility at Pew, a non-profit global research and public policy organization in Washington. “They are not doing well relative to the last generation. It should give us concern as a country.”

Just how badly are they doing? Bad enough to turn around the entire concept of middle-class prosperity in America - one where every next generation should do better than the preceding one - on its head.

Only one-third of Generation X households had more wealth than their parents held at the same age, even though most earn more, The Pew Charitable Trusts found.

And there, in a nutshell, is your so-called recovery: two thirds of an entire generation - one which is in its prime working years - doing worse than their parents!

The rest is just a story of sad anecdotes confirming that not only is there no recovery in America for the average person (the average billionaire... well that's a different story entirely), but that things are, in fact, going from bad to even worse.

First, it is the overall collapse in wealth:

Gen-Xers lost about half of their wealth between 2007 and 2010, according to a Pew Economic Mobility analysis last year. Even before the housing collapse, they were having trouble keeping up with their parents in building assets, according to Pew, which defines Generation X as people born between 1966 and 1975.

 

“Gen-Xers are the least financially secure and the most likely to experience downward mobility in retirement,” the Pew analysis found last year.

 

The bursting of the dot-com bubble, which culminated in a 67 percent drop in the Nasdaq Composite Index (CCMP) from 2000 to 2002, was a particularly severe blow to Gen-Xers just starting their careers. While most didn’t directly own stocks, the economy slipped into recession and unemployment for 25- to 34-year-olds in 2003 hit its highest level in almost a decade.

Then it is the impact of record amounts of student loans pushing Gen-Xers even further down:

Student loans also slowed asset-building, said Signe-Mary McKernan, an economist at the Washington-based Urban Institute.

 

Under the impact of successive booms and busts, many Xers have struggled to afford a family or keep their home, much less do better than their parents,” Neil Howe, co-author with William Strauss of books on generations in American history, said at a May 8 research symposium in St. Louis. “Then came the Great Recession, which hit Xers much harder.”

 

The median income for 35- to 44-year-olds dropped 9.1 percent in the three years ended in 2010, according to the Federal Reserve’s Survey of Consumer Finances. Incomes of those age 35 or less, including the youngest Gen-Xers and Millennials, fell 10.5 percent.

 

While incomes of 35- to 44-year-olds deteriorated less than those of younger Americans, their net worth slumped by 54 percent, the most for any age group, as the value of stock holdings and properties declined. The median net worth of those younger than 35 declined 25 percent.

Then, it was pure greed: everyone rushed during the last housing bubble to buy up McMansions and everyone knows how that ended (hint: the same way the current bubble will end). Greed that destroyed everyone who succumbed to temptation and did not get a government bailout:

The group aged 35 to 44 fared badly in part because its members had taken on debt to buy real estate at just the wrong moment, said William Emmons, senior economic adviser at the St. Louis Fed’s Center for Household Financial Stability. Those born from 1978 to 1983, straddling the line between Gen-Xers and Millennials, are at “ground zero” as the age group hurt most severely by the housing crisis, he said.

 

Generation X was hit the hardest,” Emmons said. “For those families themselves, there’s limited time to make up some of those losses. For the economy overall, families that are struggling pretty hard to make up their savings aren’t spending as much, so that’s a drag.”

 

The median value of mortgages and home-equity loans held by 35- to 44-year-olds climbed to $131,000 in 2007 from $85,000 in 1995, based on Survey of Consumer Finances data.

Then it was tumbling real estate valuations, and the switch from owning to renting:

Property values tumbled during the real-estate crash. For 35- to 44-year-old homeowners, the median value of a primary residence dropped 21 percent to $170,000 in 2010 from $215,000 three years earlier.

 

As more decided to rent rather than own after the downturn, they’ve missed the subsequent rebound in home prices. About 60.7 percent of 35- to 44-year-olds owned a home in the first quarter 2014, down from 68.3 percent in the first quarter 2007, according to Census data.

 

Gen-Xers were also slammed by the slump in stocks. The 35-to 44-year-old age group’s median value of financial assets, including stocks and bonds, dropped 47 percent to $14,500 in 2010 from 2007. The hit to their portfolios was more than 5 percentage points bigger than for any other age group.

 

The value of the group’s directly held stock portfolios lost 36 percent, Fed data show. While those who stayed invested in stocks may have recouped losses as the S&P 500 Index (SPX) has rallied to new highs, only 12 percent directly held equities in 2010, compared with a 17 percent share three years earlier.

Most importantly, it is the job market: which as everyone who is actually in it, knows is nowhere near as rosy the unicorns and rainbows the BLS and the US department of truth would like to make it seem.

What’s more, limited improvement in the labor market is making it more difficult to rebuild assets. “It looks pretty bad,” said Amir Sufi, an economist at the University of Chicago’s Booth School of Business. “If you don’t have income, you can’t build wealth.”

 

As of May, unemployment for 35- to 44-year-olds was 1.8 percentage point higher than in the same month in 2007.

 

The plight of Gen-Xers also means less support for the economy as they limit spending and concentrate on building up nest eggs, Emmons said.

 

Matthew Kraft, out of work for about a year, is watching fewer movies at the theater and dining out less. The 39-year-old former public relations manager in New York has filled out more than 110 applications to find something other than entry-level work.

 

“If this keeps going on for another four or five months, it’s going to start to hurt,” said Kraft, whose wife works at a hedge fund. “We have been living off of her income and dipping into our savings.”

But the scariest part will be when Gen-X starts retiring for one simple reason: nobody has anywhere near the funds they will need for provide for retirement, even if one assumes that the US welfare system is still solvent in a decade or so.

Generation X has already forfeited valuable years of interest compounding by failing to accrue savings early, said Alicia Munnell, the director of the Center for Retirement Research at Boston College and former research director at the Federal Reserve Bank of Boston.

 

“Gen-Xers are going to live longer than the current generation of retirees, and the major source of retirement income is going to be smaller,” Munnell said. After 40, if “you’ve put this off, you really have to save at a mind-boggling rate to accumulate enough to retire.”

 

As for Johnson, a mother of a 17-year-old daughter and a 12-year-old son, she’s more concerned about day-to-day living than about preparing for retirement.

That's ok Mrs. Johnson, you are in the same boat as all "developed" nations: the only concern is how to keep the lie of solvency going day-to-day rather than addressing, let alone tackling, the reality of the terminal dilemma: a systemic collapse, or hyperinflation, that is just beyond the horizon.

And now, buy stawks because... the recovery!

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Tue, 06/10/2014 - 18:09 | 4842119 ACP
ACP's picture

Yeah, and the millenials have negative net worth.

I see a pattern.

Tue, 06/10/2014 - 18:27 | 4842187 kaiserhoff
kaiserhoff's picture

Belly button lint counts as wealth?

Who knew?

Tue, 06/10/2014 - 19:03 | 4842296 max2205
max2205's picture

Bo ho,

1955 here. had to survive 1980 res, 1985 inflation, high mortgage interest, 1988 housing bust, 1987 crash, some labor shit in the 90's, 2001 crash, 2008 crash, 2009 hosing bust, and depression since.......

Life sucks then you die

Tue, 06/10/2014 - 19:29 | 4842376 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Yes, we get to hold the bag. Gen X already knew this. Thank you ZH for pointing it out to Boomers who will ignore it promptly.

Tue, 06/10/2014 - 19:35 | 4842394 Manthong
Manthong's picture

Yes, but they have the richness of an obsession with all of those great social networks and a personal audio and photographic record generator and tracking device so that the government knows everything about them in order to secure them.. um, I mean keep them secure..

Oh wait..

Tue, 06/10/2014 - 19:44 | 4842425 MeMadMax
MeMadMax's picture

ik The baby boomers have bludgeoned this country with an axe:

First, they destroyed the high moral system.

Next, they brought in as many drugs as they could shove into their pipes and noses.

Next, they contributed zip to the economy as they just wonderd thru the job force.

Next, they started the welfare bullshit, (setting up the kids to fail too).

Then they started getting positions of power, fucking up the system within.

Finally, now that their farts are the only thing of value, they are destroying the healthcare system since they didn't save a single penny for retirement or anything...

 

I honestly hope they "filter out" as soon as possible so us 90's brats can hopefully fix something...

 

Tue, 06/10/2014 - 20:02 | 4842475 James_Cole
James_Cole's picture

Let's all blame each other and then complain about it.

Tue, 06/10/2014 - 20:08 | 4842490 McMolotov
McMolotov's picture

I propose getting drunk instead.

Tue, 06/10/2014 - 23:13 | 4843278 -.-
-.-'s picture

*Cheers*

Wed, 06/11/2014 - 08:56 | 4844023 UselessEater
UselessEater's picture

Yes!!

BTW loops holes, tax laws etc have ALSO changed radically since the early 1990's (at least in Australia) cutting many gen X out of options to retain and/or generate their business income to a growing extent. For eg tax rules changed 15yrs ago so if 80% of your income was from one client you have to now pay the higher employee tax rates not the lower business tax rates  - regardless of contract length or value i.e. you were deemed an employee overnight just when starting a business. These type of tactics have harvested and destroyed the real power of gen X as whole (some individuals sink others swim, but its been a progressive increase on constraining motivated risk takers with increasing preferential treatment to multinational businesses).

I for one could not always contract to two firms at once in a financial year given the demands of the firms, nature and variability of the contracts (even though they paid well at a company tax rate) especially after having to pay Public Liability and Workers Comp and other bullshit regulatory costs for work with no operational or financial risk.

So yes, gen X has had the recessions starting with the affects of the sky high interest rates in the late 80's (nice to graduate into that mess with a debt) and it just got trickier for those who worked towards getting their own businesses while trying to get out of the corporate career path chain which made a much more while back (eg I eventually got Company a car, discount bank loans, student fees paid, medical and pension top ups etc then the new Fringe Benefits Tax shut down most employer perks without wages going up in NET value).

So yes things have changed to tighten every dollar to the tax man unlike the early 90's when I started working during a recession and most my graduating class and the one before was looking for work!!

Its not just constant (manufactured) boom-bust cycles its also progressive taxation and regulations....its not about raging against boomers who are as docile as we Gen X arewithin most nations this tax and regulatory creep happening – it not national and its not accidental. It is f'king aggravating. 

 

Tue, 06/10/2014 - 22:28 | 4843118 FredFlintstone
FredFlintstone's picture

James, I can finally give you a greenie!

Wed, 06/11/2014 - 07:34 | 4843810 williambanzai7
williambanzai7's picture

That is exactly the scenario they plan at Bilderberg.

Wed, 06/11/2014 - 04:30 | 4843650 BorisTheBlade
BorisTheBlade's picture

Divide and conquer was played nicely along racial, gender, sex orientation, political lines. Now it will be played as a divide between generations. Do people ever learn?Guess not.

Tue, 06/10/2014 - 20:32 | 4842598 tarsubil
tarsubil's picture

The Boomer generation is really a mystery to me. It has to be the most self-centered generation ever. My parents have always looked after one person and that is themselves. I understand their parents were messed up but still to this day they are completely obsessed with themselves only.

Tue, 06/10/2014 - 21:06 | 4842743 Miffed Microbio...
Miffed Microbiologist's picture

I think this is simply because of sheer numbers. From birth until the last has died they have influence society by their movements. As a tail end boomer ( 53) I remember growing up with all the commercials geared to them as children and now ads are slanted to geriatrics. All modern farming was based on how to feed such a massive influx of children. I think this can cause some self centeredness when society must rearrange itself to see to your needs. It is simply hard to compete with this juggernaut.

It is sad your parents are so self absorbed. Their fault seems not to have rubbed off on to you.Though part of the Greatest Generation, my parents were as well and my brother and I suffered. Self centeredness seems to be quite common today in all age groups I'm afraid.

Miffed;-)

Tue, 06/10/2014 - 23:56 | 4843374 The_Dude
The_Dude's picture

Self centered mentality correlates nicely with reduced family size....imagine where we are heading.

Wed, 06/11/2014 - 01:12 | 4843499 PT
PT's picture

Re "sheer numbers":

Yes, what's that about democracies, and wolves and sheep voting for dinner again?

Mind you, I still see plenty of instances of politicians ignoring the will of the majority, including ignoring referendums.  However, the majority did manage to delay the introduction of a GST, but we never managed to stop it so perhaps the majority does have a little bit of voting power.

Tue, 06/10/2014 - 22:32 | 4843139 FredFlintstone
FredFlintstone's picture

My parents ('41 & '42) are super self absorbed and my grandparents even more so. 6 people, 2 generations and none of them boomers. This thread is off the rails.

Wed, 06/11/2014 - 07:54 | 4843834 tarsubil
tarsubil's picture

Seems like a simple explanation. They simply inherited it and continued the denial of the problem. Plenty of them in every generation I guess. The boomers seem to be the ones that entered the ponzi at just the right time.

Wed, 06/11/2014 - 01:01 | 4843483 PT
PT's picture

1.  "Wage restraint" from a Labor Prime Minister.
2.  The recession "we had to have".
3.  University fees.
4.  Real estate prices.

And regarding "Then, it was pure greed: everyone rushed during the last housing bubble to buy up McMansions and ..."

It was more than "greed".
In the first year that I made 40 grand (average weekly earnings at the time) the median price of housing went up by over 40 grand - from $400k to over $440k.  Ponzi Finance was being actively promoted (not quite the same as Ponzi scheme, Ponzi Finance as defined by Minsky - look it up).  That year I could have saved every single cent towards a deposit and still ended up worse off.  There was simply no way to keep up with the housing explosion without jumping on board.  (Luckily for me, procrastination won the day.) 
I take great offence to the idea that greed was driving up house prices.  Sure it was.  Greedy banksters and a few lucky rich people.  But the average yob simply could not keep up with wages alone.  If they didn't want to be homeless then they were forced to look for another way.  Exchanging labour for money was simply priced out of the market.  In fact it still is.

5.  Compulsory superannuation.

Sounds great when you say it fast.  But when investing is compulsory, you no longer have the option to pull money out when the returns are not there.  Also, If the economy worked fine before billions of extra cash went into the stock market, what are all those extra billions actually doing now?  Seriously, exactly what are all those extra billions actually doing?  Producing more widgets for us to buy?  Increasing dividends?  Pushing stock prices up?  Pushing real estate prices up?  Financing a larger proportion of unprofitable ventures - i.e. encouraging mis-allocation of capital?  Encouraging larger volumes of buying and selling and disappearing as "management fees"?  What are those billions actually doing?

Re "Not enough for retirement":

If the world has grown to cater for the baby boomers, then as they die off we should end up with excess productive capacity.  THIS SHOULD MEAN THAT NO-ONE HAS TO STARVE.  If the low population pre-boomer generation could feed the boomer generation, and don't forget that our technology has advanced since then, there is no reason why following generations should suffer.  Speaking of which, the pre-boomer generation paid to educate the boomers but the boomers did not pay to educate Generation X - even though the costs were proportionately less.  (Err, this refers to Australia.  We used to have free university.  I hear you guys in the US always had to pay, though it suddenly got more expensive after the boomers graduated).  But I digress.  The point is that we shouldn't have a retirement problem or a production problem, just a distribution problem.

Personally, I feel that if life was a 100 metre sprint, everyone else is at the 50 metre mark and I'm still at the starting line, trying to tie up my shoelaces.

But I do know of one Gen-Y guy who has gone from rags to riches.  Sure he worked long hours but so does everyone else.  He knows something the rest of us don't.  I often wonder if it has something to do with his dad being a banker.  Maybe he knows a thing or two about managing debt.  He also has a strange personality - even before he "made it", he was acting as if he owned the whole world and everyone was his personal slave.  Feel free to ignore those last 3 sentences if you wish - just my observations / opinions / biases, I might be wrong.  The best information is always hidden.

Wed, 06/11/2014 - 09:53 | 4844254 UselessEater
UselessEater's picture

ah the recession we had to have.... being called an Aust banana republic and all; then the strange urge to float the dollar after a Kissinger visit, and to free our banking from restraint further more!!!!... then the subsequent vertical rise of household debt & property "values" that accelerated whatever the interest rate might "be" in accordance with almost universal international trends (cute coincidence); good thing everyone here thinks Gina Rinehart is a self made success and that the countless self made contractors who have folded under each political party in the last 4+ decades are losers.

So be a true blue Aussie and vote for either cheek of the the same Arse. (Same shit everywhere).

 

 

Tue, 06/10/2014 - 19:39 | 4842410 ted41776
ted41776's picture

you sir are an optimist!

Tue, 06/10/2014 - 18:28 | 4842191 Cattender
Cattender's picture

i was born in 1965 so i'm Generation x i guess... i see most of the people i know struggling right now. regardless of their age... it's sad.. someday this period will be classified as the BEGINNING of the Greatest Depression IMHO

Tue, 06/10/2014 - 18:41 | 4842246 Gringo Viejo
Gringo Viejo's picture

@Cattender: I'm a boomer...approaching expectancy. Would suggest you go to Youtube and watch George Carlin's "The American Dream." That'll 'splain it

Tue, 06/10/2014 - 19:10 | 4842317 CrazyCooter
CrazyCooter's picture

I love that Carlin skit; it is very true.

I am in the same boat. But, I am slowly moving to a cash basis. I pay cash for everything and carry only a modest amount of debt. I have a foreclosure still pending due to Fannie Mae dragging ass for months now (property auctioned - they can't figure out what I owe). I am ready to get my lawyer invovled, hammer out a plan, and knock it out, but all I can do now is wait.

The problem most Gen X'ers have is the one I had; they are looking at life through the traditional lens of their parents and not the lens of "business", or "accounting", or "arithmetic". Once they do, they realize they walk away from the house, get an apartment, and have some cash left over and actually live better. There is the problem of the BK noose being significantly tightened, but the worst case is a clean slate in five years versus still treading water and the best case is walking away.

So what if I don't own a house. A car is a depreciating asset; I don't want a new one so mine are 10+ years old, but well maintained. If I need to move for work, I have a lease to worry about; I can just pack a go. And the way cities and states are run these days, I would much rather have the option to pack my shit than to be stuck with a huge tax liability and fearing the five year BK treadmill.

It took years for life to pound the lesson into my head, but it won't be forgotten before I am dead.

Regards,

Cooter

Tue, 06/10/2014 - 19:19 | 4842344 McMolotov
McMolotov's picture

+1

I feel somewhat fortunate the crash happened when I was relatively young (I'm 36). I've used it as an opportunity to scale everything back as a form of long-term protest against the overbearing State and its corporate and financial masters.

The biggest "fuck you" to the system is to live as simply and as outside of it as possible.

Tue, 06/10/2014 - 19:22 | 4842352 sessinpo
sessinpo's picture

McMolotov    I feel somewhat fortunate the crash happened when I was relatively young (I'm 36).

----

You should feel fortunate if that blip woke you up because the crash hasn't happened yet.

Tue, 06/10/2014 - 19:40 | 4842412 CrazyCooter
CrazyCooter's picture

True dat!

Most people think the crash will be financial, but I am of the opinion the real crash is in energy production. If I live to old age, I will most certainly see that turd hit the fan.

Regards,

Cooter

Tue, 06/10/2014 - 19:41 | 4842415 gh0atrider
gh0atrider's picture

gh0atrider has a shitload more Bitcoins than his parents did at this age.

Tue, 06/10/2014 - 21:50 | 4842954 logicalman
logicalman's picture

Why do you BitCoin zealots refer to yourselves in the third person?

Or are you a BitCoin zealot that everyone here is familiar with, but using a different name.

 

Tue, 06/10/2014 - 22:40 | 4843177 gh0atrider
gh0atrider's picture

fonestar was killed because of his atrocious behaviour on this blog.  The fonestard() program immediately spawned gh0atrider.

gh0atrider = fonestar 2.0

Wed, 06/11/2014 - 00:13 | 4843391 TheReplacement
TheReplacement's picture

You're like that nerd in HS who talked like a robot and referred to himself as something like the Sherminator.  I'm not going to tell you how lame that is but you really should consider taking a look at things to see if this is really who you want to be.

Wed, 06/11/2014 - 00:23 | 4843410 gh0atrider
gh0atrider's picture

gh0atrider, who is he?

gh0atrider is gh0atrider.

Tue, 06/10/2014 - 19:51 | 4842430 McMolotov
McMolotov's picture

Crash was probably the wrong word to use. Maybe beginning of the end instead? I don't particularly see an actual cataclysmic crash happening anymore anyway; more of a slow grind. I've been waiting a while for "the big one," and every time I've thought it was just around the corner, we've simply sunk further into the abyss.

There's probably going to be hard landing at some point, but the ride down will suck just as much.

Tue, 06/10/2014 - 20:37 | 4842619 tarsubil
tarsubil's picture

Yeap. Slowly bled dry. The future is Detroit. I can see little pieces of Detroit where I live and still they are building 500K and 600K housing developments. It really is getting more bonkers everyday.

Tue, 06/10/2014 - 19:24 | 4842362 nope-1004
nope-1004's picture

I try to deal in cash too, problem is the asshole banks don't want to give it up.  Ever go in and ask for $1,000 cash?  They look at you in horror.  Then they throw the usual BS "cash is bad because the police think you're a drug dealer".  Just plain stupidity.

They want you in their digital system, where they can track, trace, log, and tax.  Cash is the enemy.

 

Tue, 06/10/2014 - 19:38 | 4842406 CrazyCooter
CrazyCooter's picture

I have gotten SARs filed on me just for handling cash regarding my account. I am pretty sure the teller was just a dumb broad and the bank system made her complete it and was thus totally automatic. I am not sure what the limit was set at, but I suspect 2500 or 3000.

That said, I just do regular limit ATM withdrawls usually as a function of my paycycle (i.e. after payday I pull my limit in cash which holds me til next payday). If you shop around, you can find the lowest, fixed fee ATMs. If you pull 200 or or 300 or 400 at a fixed fee of a few bucks, it doesn't sting much.

While I do have credit cards, I keep their usage very minimal. I use them if I travel, buy airline tickets, and occasional online shopping. Amazon is probably my biggest sin, but shit I live in Alaska and there is a lot of crap just JUST CANT GET HERE. So, no option but to "suck it in" as Mr Munger likes to say.

So, they have me in the digital system but they don't know shit about what I do with most of my money not that it is all that exciting (groceries, sundries, fishing gear, beer, etc).

Regards,

Cooter

Tue, 06/10/2014 - 20:01 | 4842464 James_Cole
James_Cole's picture

.

Tue, 06/10/2014 - 20:11 | 4842500 Jugdish787
Jugdish787's picture

I am gen x too, born in 71. All I can say is this whole experience, over the last 5 or 6 years, has completely changed me, in what I see as a good way. Back then my main concerns were how big my tv was, the car I drove and watching sports...some of you here have really opened my eyes over the years with lessons and insight. 10 years ago if you asked about eating fresh fruits / veggies from the garden I have in my back yard I would have said you were crazy. Today I am picking cucumbers, peas and beans with tons of other things on the way, enjoying every minute of it. My life has been simplified and I am grateful. Whatever happens, so be it.

Wed, 06/11/2014 - 22:07 | 4847151 RaceToTheBottom
RaceToTheBottom's picture

Congrates on how you have responded to this mess.   It will suit you well for the upcoming new mess.

Tue, 06/10/2014 - 20:03 | 4842479 optimator
optimator's picture

And they have the nerve to ask, "Why are you withdrawing this money?".  I've answered, "You never asked why I was depositing it?" and "Your interest rate will put me two tax brackets higher".  I do remember to wave at the "Financial Planners" office on my way out -- you know, the one the teller directs you to.

Tue, 06/10/2014 - 20:38 | 4842627 duo
duo's picture

That's wierd, because a month ago I had to go to the bank to get a cashier's check, waited in line for half an hour, and every single person ahead of me walked out with at least $800, $1200 was the average (the teller would count it so everyone could see).

The next day, the guy in front of me took out $8200, no questions asked.  BofA, far North Dallas.

The underground cash economy is huge.  We're just not part of it.

Wed, 06/11/2014 - 07:08 | 4843774 PT
PT's picture

It's up to you ( and us ) to educate them.  We lead, they follow (otherwise they will lead and you will follow).  I laugh at them.  "Get with the times.  I use 3 grand just to pay a few bills.  Do you know that the biggest note your ATM spits out is the same fifty dollar note from 20 years ago?  Why should I trust the computers?  I've got Windows 8.  Would you trust Windows 8???"

Many times in my twenties I forgot that I was an adult.  "Oh, that's right, I'm an adult now.  I have to solve that problem."  Sounds like you're in a similar position.  What happened to, "The customer is ALWAYS right"?  No, some banker drone dribbles some govt propaganda nonsense and we play along.  Fuck 'em.  Through political maneuvring they stole our wages that we earnt, before we can even touch it.

The cash-less economy will be forced upon us through bullshit legislation and inflation.

Tue, 06/10/2014 - 23:53 | 4843371 G in FLA
G in FLA's picture

"It's a big club, and you ain't in it"

Tue, 06/10/2014 - 19:30 | 4842377 duo
duo's picture

I'm surprised the number isn't 90% or more of Gen Xers living worse then their parents.  Hell, the late boomers (baby busters) missed out on cheap real estate, but we had Reagan for president in our 20's.

Tue, 06/10/2014 - 19:33 | 4842393 GeorgeHayduke
GeorgeHayduke's picture

"...someday this period will be classified as the BEGINNING of the Greatest Depression IMHO"

Either that or it will be known as the end of the cheap energy/easy living period for humankind. It'll depend on the perpect those folks who will be living at a much lower energy level at the time see it.

They may also classify it as the age of assholes since they would like to have the energy we burned up to build unsustainable cities in unsustainable locations, like deserts. Luckily, most of us here and now will likely be gone by then because this hatred between Boomers, Gen-Xers and Millenials will look like a nice game of checkers compared to what those folks might do to someone from this era.

Tue, 06/10/2014 - 18:41 | 4842244 ebworthen
ebworthen's picture

And it's going to be worse for the A.O. (Always On) generation, which is the highlighted purple crashing line.

Tue, 06/10/2014 - 19:10 | 4842316 McMolotov
McMolotov's picture

Yep, I was born in '78, and this only confirmed what I already knew — that I'm screwed.

I really feel horrible for my kids, though. They're only 13, 11, and 9, and this place will eventually be (at best) a few steps above third-world status in their lifetimes. They sure as hell don't deserve that shit.

Tue, 06/10/2014 - 19:25 | 4842365 TeamDepends
TeamDepends's picture

Mac, for what it's worth, we (who have fathered no children as of yet) will fight to the death for yours, because we might just yet....

 

Tue, 06/10/2014 - 19:44 | 4842424 TeamDepends
TeamDepends's picture

[Strangelove's plan for post-nuclear war survival involves living underground with a 10:1 female-to-male ratio]

General "Buck" Turgidson: Doctor, you mentioned the ratio of ten women to each man. Now, wouldn't that necessitate the abandonment of the so-called monogamous sexual relationship, I mean, as far as men were concerned?

Dr. Strangelove: Regrettably, yes. But it is, you know, a sacrifice required for the future of the human race. I hasten to add that since each man will be required to do prodigious... service along these lines, the women will have to be selected for their sexual characteristics which will have to be of a highly stimulating nature.

Ambassador de Sadesky: I must confess, you have an astonishingly good idea there, Doctor.

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