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Drudge Retort: The Other Side of the News
Friday, December 08, 2023

99% of Americans will be financially worse-off than they were pre-pandemic by mid-2024, JPMorgan says

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Seems like junk economics.

#1 | Posted by LegallyYourDead at 2023-12-07 11:42 PM | Reply | Newsworthy 2

Older millennials "a demographic of Americans born in the 1980s that holds significant influence on the US economy"

They'll be fine when their crypto kicks in. Lambo's for all!!

#2 | Posted by REDIAL at 2023-12-07 11:44 PM | Reply

-- trump.

#3 | Posted by Tor at 2023-12-07 11:51 PM | Reply

"Seems like junk economics."

Been heading this way since 1975.

#4 | Posted by snoofy at 2023-12-08 12:11 AM | Reply | Newsworthy 3

Compare the way things are now things were economically fine in 1975.

#5 | Posted by Tor at 2023-12-08 01:06 AM | Reply

I guess I'll be in the 1%.
Or this story is pure --------!

#6 | Posted by a_monson at 2023-12-08 05:30 AM | Reply

Two Republican Presidents led us into massive recessions and did little to protect workers while shoring up the rich and corporate America.

What did they expect to happen?

#7 | Posted by Sycophant at 2023-12-08 10:46 AM | Reply | Newsworthy 1

The chart below shows how, by June 2024, every income group except the top 1% is on pace to dip below their March 2020 levels of inflation-adjusted liquid assets, in the form of deposits and money market funds.

"Junk science"

They used the metric of deposits and MMF. Guess what? Anyone with more than two cents to rub together has been moving their money out of that to take advantage of/protect themselves from higher interest rates. By investing that money in the stock market, etc.

I have no doubt that many are hurting financially. The middle class in this country has been shrinking for decades and income mobility is worse than even more classist societies like the UK.

But this study is crap. The people who put it out aren't idiots. They have something to gain from trumpeting these misleading stats, much like the people who falsely claimed that they could shield themselves from subprime risk by securitizing mortgages.

#8 | Posted by censored at 2023-12-09 09:11 AM | Reply

Finally! I made it to the 1%! I won't be worse off that last year and most likely will be doing a little better.

And honestly it's really not that hard if you apply yourself.

And I agree with censored ... I just read somewhere that the middle class is actually more wealthy after Covid (assuming they survived).

Like everything in the universe it's all relative and depending on how you look at it.

#9 | Posted by donnerboy at 2023-12-09 11:36 AM | Reply

"In a Thursday note, the bank's top stock strategist Marko Kolanovic said 80% of consumers, a group that accounts for nearly two-thirds of consumption, has already depleted any savings cushion they may have built during lockdowns"

Anybody have any issues with that statement?

Any inaccuracies in it?

#10 | Posted by eberly at 2023-12-09 12:18 PM | Reply

Addressed in post #8.

#11 | Posted by YAV at 2023-12-09 10:02 PM | Reply

Climax Blues Band - Rich Man (1972)
www.youtube.com

Lyrics excerpt...

genius.com

...
Oh, I am a rich man
And I drive a Cadillac
I buy everything I want
I sell bullets to the soldiers

Oh, I am a poor man
I don't drive a Cadillac
Can't buy everything I want
They want me to be a soldier

Rich man wins
Poor man pays
Rich man wins
Poor man pays
Rich man wins
Poor man pays
Rich man wins
Poor man pays
...



#12 | Posted by LampLighter at 2023-12-09 10:17 PM | Reply

Bidenomics in action

#13 | Posted by THEBULL at 2023-12-10 11:06 AM | Reply

Addressed in post #8.

#11 | POSTED BY YAV AT 2023-12-09 10:02 PM | FLAG:

That didn't address it at all. Less than 15% of Americans directly own any stock.

#14 | Posted by sitzkrieg at 2023-12-10 11:30 AM | Reply

It goes without saying that a downturn in the economy will reflect negatively on most people's net worth and savings and porfolios. Why not just say that in 6 months the sky will be blue...

J.P. Morgan has plenty of reason to cause a scare and a doenturn in the economy. No.1 he owns a bank. Economic downturn useually comes with higher interest rates.
No 2....he is one of the world's largest holders of Silver, gold's less shiney sister, but unlike gold, greatly under-valued and due for a run in a depressed economy...

#15 | Posted by earthmuse at 2023-12-10 11:40 AM | Reply

That didn't address it at all. Less than 15% of Americans directly own any stock. #14 | Posted by sitzkrieg

OK, I'll give more examples of why the study is crap.

Once again, the study measurement only takes into account liquid assets. So, a person with $10 in savings and no debt would be in worse shape according to the study than someone with $1,000 in savings and $10,000,000 in debt. Similarly, someone who stuck $100K in a CD for 10 months at 5% interest would be worse off according to the study than if they left that money sitting in their checking account at .01% interest.

Anecdotally, every single person in my real-life social circle is better off financially right now than they were pre-pandemic. Granted, it is anecdotal, and I tend to hang with individuals who are above-average in education and income. But I'm not hobnobbing with the 1% on a regular basis. So that's a huge disconnect with my reality.

TLDR, liquid assets is only one measure of financial soundness. No doubt that many are suffering, but suggesting that almost everyone is hurting financially is a bridge too far.

#16 | Posted by censored at 2023-12-10 08:04 PM | Reply

That didn't address it at all. Less than 15% of Americans directly own any stock. #14 | Posted by sitzkrieg

And now a word from the alternate facts Dept.

WASHINGTON, D.C. -- Gallup finds 61% of Americans reporting that they own stock, based on its April Economy and Personal Finance survey. This is up from the 56% measured in 2021 and 55% measured in 2020, and is the highest it has been since 2008.

Stock ownership averaged 62% between 2001 and 2008 -- but it fell after the 2007-2009 recession and remained at a reduced level until this year.

news.qgallup.com

But is owning stock really the best measurement of wealth? What about real estate?

I don't own any stock anymore and I am comfortably retired. And happy to find out I am in the 1%!

#17 | Posted by donnerboy at 2023-12-10 08:18 PM | Reply | Newsworthy 1

CDs and bonds are liquid assets when the only penalty for early withdrawal is loss of accrued interest -- in some cases only partial loss.

#18 | Posted by snoofy at 2023-12-10 08:19 PM | Reply

Assets of all types to total debts is always the best measure of personal wealth. The problem with many Americans is credit debt and not living within their means. One might also add 'impulse control'. Many Americans have poor impulse control. They want something, and they want it NOW...

Forget that they throw it on a high interest credit card or take out a personal loan at terrible rates to get it. Keeping up with the proverbial Joneses is a very real thing in America...

Like watching a whole generation of rednecks buying 50k to 70k pickup trucks that 70% of them either don't need, or cannot afford, or both It's like watching a mindless herd of cattle stampede off a cliff...

#19 | Posted by earthmuse at 2023-12-10 09:05 PM | Reply

Earth muse gets it right.

Odd.

It's all for the wrong reason.

He's worried about Biden winning reelection so now it's the consumers fault.

He's right though ... ..it IS the consumers fault.

Couldn't blame dumbass consumers when Biden wasn't president, could he?

#20 | Posted by eberly at 2023-12-10 09:34 PM | Reply

"Many Americans have poor impulse control. They want something, and they want it NOW..."

Posted by Earthmuse ... ... not Eberly

#21 | Posted by eberly at 2023-12-10 09:35 PM | Reply

That didn't address it at all. Less than 15% of Americans directly own any stock. #14 | Posted by sitzkrieg

This is incorrect. It's increased a little ... .

www.axios.com

As Sitzkrieg said, DIRECTLY own stocks.

Not stocks owned through a mutual fund which ----------- referenced.

1% ... ... ... right. Can't make the distinction I just referenced but claims to be in the 1%

#22 | Posted by eberly at 2023-12-10 09:43 PM | Reply

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