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Only 41 percent of Americans have $ 1000 to cover an emergency – Investment Watch


by Michael Snyder

We expect the United States economy to remain united in 2020, because if there is any major economic crisis, much of the country will be broken almost immediately. Today, almost half of all Americans live to the limit financially. For many, it is out of necessity, but for others it is a conscious choice. Too many people do not see the need to build a substantial financial cushion because they have tremendous faith in the system. They do not think that things will get too bad in this country, so it is not urgent to save funds for a rainy day. But even if the authorities could somehow prevent an economic recession from happening again, individual emergencies are constantly happening around us. Cars break down, people get sick and accidents happen. Unfortunately, most Americans are not prepared for some type of emergency. In fact, a new survey found that only 41 percent of Americans could cover an emergency expense of $ 1,000 using their current savings …

The Bankrate January financial security survey reveals that only four out of every 10 American adults (41 percent) would cover the cost of a $ 1,000 car repair or emergency savings room visit. The findings echo what previous studies by Bankrate and others, including the Federal Reserve and the Pew Charitable Trusts, have found about The lack of savings of Americans on rainy days.

So where would everyone else get the money for an emergency?

Well, most of them would borrow the money or get it from a relative.

And usually, an emergency costs much more than $ 1,000. There's more here of the Bankrate survey

Emergencies are often not cheap. Among respondents who said that they or their relatives dealt with an unexpected expense in the last 12 months, the average amount of the largest expense was $ 1,750.

Three out of 10 adults (29 percent) said they or their family members spent at least $ 5,000 in the last year to cover an unanticipated cost.

The bottom line is that most of the country is living from paycheck to paycheck, and most Americans are only a small step away from the financial disaster.

In 2008, millions of Americans suddenly lost their jobs, and because many of them lived to the limit financially, many of them suddenly failed to pay their mortgages.

You might think we would have learned something from that very painful experience, but we didn't.

Therefore, it is better than the US economy. UU. Stay relatively stable, because a serious slowdown would be very ugly.

Unfortunately, a growing number of experts warn that our fate is about to run out. In fact, the IMF chief recently warned that we could be facing another "Great Depression"

The head of the International Monetary Fund has warned that the global economy runs the risk of a return from the Great Depression, driven by inequality and instability in the financial sector.

Speaking at the Peterson Institute of International Economic Sciences In Washington, Kristalina Georgieva said a new IMF investigation, which compares the current economy with the "twenties" that culminated in the great market collapse of 1929, revealed that a similar trend was already underway.

That certainly doesn't sound good at all.

Here in the United States, most people have chosen to ignore all the signs that the economy is starting to really decrease.

But as stores and businesses continue to close throughout the country, it will be very difficult to ignore all empty buildings.

For example, Macy has just announced that they will close about 30 stores

Macy & # 39; s is closing approximately more than two dozen stores as the problems for the famous retailer increase.

The company confirmed to CNN Business that it will close 28 Macy locations and one Bloomingdale location in the coming months. The closures affect locations in several states, including Florida, California, and Georgia, according to compiled lists of various media reports.

And one of the leading shopping center retailers across the country has just announced that they will close 91 stores

The fashion retailer Express plans to close 91 stores as part of a "fleet rationalization" after a fall in sales during the holidays.

The measure occurs in the middle of a wave of store closures after the Christmas shopping season.

Of course I could go on and on all day. Here are a couple more examples of major retailers. that are closing stores

Bed bath and beyond is closing 60 locations, with the list revealed on Tuesday. And Schurman Retail Group plans to close its Papyrus and American Greetings stores, for a total of approximately 254 locations, within the next four to six weeks.

But even though all the evidence to the contrary, irrational optimists will still make us believe that the United States has entered a new era of tremendous economic prosperity.

I really wish it were true.

Unfortunately, decades of extremely bad decisions are reaching us in an important way, and instead of changing course, we keep moving forward. towards an appointment with destiny.

At this moment I will share with you the number one advice that I give to all who ask about the preparation for the great storm that is coming.

Build a financial mattress.

When things get bad, you will need money.

I know it sounds extremely simple, but obviously most of the country is choosing not to do this.

Instead, most of the country survives from month to month with hardly any money in its bank accounts, so when a disaster occurs, they will look for someone else to rescue them.

We have had more than a decade since the 2008 crisis to prepare for the next one, but most people are acting as if the next one never comes.

Unfortunately, the truth is that the next crisis has already begun, and companies across the country they go bankrupt.

But most Americans will not realize what is happening until things really start to get out of hand, and by then it will be too late to do some sort of preparation.

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