FAIR OR FARE
If you are investing for the future or have a 401K retirement plan that is invested in the Stock Market you may want to consider moving them. The probability of the market improving anytime soon is slim to none. Prior to the December 18, 2015 crash, the Stocks and Bond yield was +2.1%.
The existing Stock Market performance is known as a Bear Market. Be careful of the advice you may receive that this is a "Bear By The Tail" market. Bear By The Tail means if you "let go" or liquidate your account the market may come back and you would not have a loss.
Pessimist Analysts are predicting a worse than 2009 market for 2016. Optimists are neutral and have already pulled out of certain global markets.
The current US Administration has ignored Main Street Americans and choose to help and support Wall Street since 2009.
Americans lost over 1 Trillion 750 Billion dollars of investments, savings and retirement money in 2009. In addition many have lost their homes or have a mortgage higher than the value of the home even today.
In the last 45 days the Stock Market losses have far exceeded that 2009 level. The total impact is yet to be felt.
A FUTURE FINANCIAL OUTLOOK
If you had $50,000 dollars and invested about 10% of your salary, for the next 30 years, at 9% interest with no losses, you would have a bank roll of $1,000,000. This is still $500,000 short of what you will need to retire, long term. What's your chances of that happening?
What is Consumer Confidence?
It is a USA Government survey by the Conference Board that measures how optimistic or pessimistic consumers are with respect to the USA economy in the past compared to today and the near future.
January's Consumer Confidence level is down again. Americans do not believe that the economy is improving. They are correct.
USA Consumer Confidence has been down trending for the past 15 months.
FEDERAL RESERVE BOARD
The last major shift of the economy was administered by the Federal Reserve Board who increased the Prime Lending Rate on December 16, 2015.
The Stock Market went into its dive on December 18, 2015. Since then, it has posted losses of 1 TRILLION 350 BILLION dollars by mid January. The market is continuing to dive as of this date. This has the appearence to be worse than the 2009 Great Recession.
The 2015 US economy preformed worse than 2009 depressionary economy. The confirmed reports were completed before the onset of the Stock Market drop on December 18, 2015.
The bubble Stock Market is expected to continue its current downward fluctuations through June 2016. Will that be its end? Analysts say no. Experts indicate that losses will exceed gains throughout 2016.
|RED = WORSE
Total US Administration's
Unfunded Liabilities as of 1/31/2016
123 Trillion 275 Billion Dollars
Brief summation in Trillions of Dollars of the current USA unfunded liabilities.
Note: The Social Security Trust Fund has been liquidated by the US Politicans.
-15 Trillion Dollars - Social Security
-9 Trillion - National Health care
-79 Trillion - Medicare
-19 Trillion - Prescription Drug
||0 Points ^
|7/20 Yr. 6M
||6.025 % ^
|0 Point Rates
Mortgage interest rates have remained relatively level since the FED increased the Prime Lending Rate in Mid December 2015.
The Federal Reserve Board has put over any new inceases in the Prime Lending Rate or other FED controlled interest rates until the Mid March Fed meeting.
Speculation: If former Fed Chairman Greenspan, a 25 year veteran of running the economy, was in the Chair, he in all likely hood, would reverse the December decision now, in an effort to save the investors and investment companies on Wall Street; instead of letting the taxpayer pay for the FED Rate Hike of December 18, 2015 pending disaster.
The bottom line.
322 Million 786 Thousand - US Population
USA - Americans Indebted by Government
64 Trillion 747 Billion as of 1:35 PM 1/30/2016 ^
USA - Per Person Liability - $381,910.31
USA - Per Family Liability - $989,147.90
Not included in the figures is the National Debt of 18 Trillion Dollars. This is an additional cost to the American people.
- $ 58,768.69 Per Person Liability
- $152,210.95 Per Family Liability