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Monday, March 23, 2015

Oblivious

~ One second prior to this photo taken in 1960, Frank Gifford of the Giants was oblivious that Chuck Bednarik of the Eagles (white jersey) was nearby 

Nearly six and a half years since the market crash of September 2008 and admittedly it is rather perplexing to understand this economy and how people are reacting to it..

The National Debt has increased from $9.7 Trillion in 9/08 to presently $18.1 Trillion, an increase of nearly Double in less than one eight-year term in office

In addition, while the "official" unemployment rate is 5.5%, only 63% of Americans are working which means over one third (37%) or over 100 million people for various reasons (some legitimate, some not) are not working..
In 2000, the median income according to USDebtClock.org was $28,275, and in a span of 15 years, it has increased to $28,601

Meanwhile the median new price of a home in 2000 was $170,798 and fifteen years later, the median price now is $295,821..

Think about that..  Median home prices have increased in 15 years by $125,023 and YET median income has increase by a pathetic $396 dollars!!!

Meanwhile 49.5% of the Total population of the US is receiving some kind of benefits from the government..
On and on we could go..

And yet nothing seems to stop people from spending $7.50 to $9.00 on a movie ticket to escape into a comic book film or piece of crap Disney movie like 'Frozen' which really was made specifically for 4-7 yr old children to enjoy..

Last year there were 33 films that grossed domestically $100 million or more with 13 of those films making between $200m - $344m..   Just those 33 films add up to about $5.3 billion in ticket sales..

And no matter how bad things are, no one it seems will deprive themselves of a ticket to a live sports event..
Take the NFL.. in spite of all the scandals, last year all 32 teams averaged over 50,000 people per home game with 15 of those teams averaging 70,000+ people in attendance.  Dallas was #1 with over 90,000 people per home game!

The NFL could raise their ticket prices by double and we would wager anything that fans would still attend with no meaningful drop-off.

And people haven't done much to tighten their financial belts or prepare for a rainy day even with this wonderful temporary reprieve from high gas prices..

2014 saw record sales in automobile purchases and leases, and more young imbeciles than ever before were taking out student loans to get an education not worth the piece of paper the diploma will be printed on..
~ Gifford (on stretcher) was kind enough to demonstrate what awaits for most Americans who naively think the economy is better and are spending as if so..

As of Dec, 2014, the average US household carries over $15,000 in personal credit card debt.  This figure does not include the average student loan debt of $32,264 and mortgage debt of $155,192

In total, consumers owe $11.74 Trillion in debt, a 3.7% increase from 2013

And few to none care..

There's just no concern.. no worry..  no fear of consequence..
People still take vacations..  Still splurge on Christmas..

Still, to quote that annoying Prince song, want to party like its 1999...

We've observed little to no evidence people are truly taking this continual never ending recession-depression seriously unless their finances are SO bad that there's little choice for them but to live out in their cars or out on the street..

In all likelihood the evil Federal Reserve will have no choice but to finally raise interest rates for the first time in over eight years..

Not only will this make it more expensive for the US to repay its debt or even keep up with the deficit resulting ultimately in higher taxes but it will also spike the interest rates of credit cards and any loans with adjustable interest rates.
~ Yep, that's a man with a cigar in his mouth & cigarette betw. fingers..

For example:  Let's say you owe $15,000 on a credit card with the goal to repay in full in 4 years and the current interest rate is 15%, your payment every month would be $417.46

Now if/when interest rates are raised and your new interest rate is 17%, now your minimum payment is $432.83.  

That $15 monthly might not seem like much but over 48 payments, that's $720 more to your credit card company...

We wonder if people will ever have the will or self-discipline to make voluntary cuts to their wasteful personal budget or if it will take something terrible for real Change to be a thrust-upon necessity...
~ Isn't obliviousness adorable?