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OK folks it’s another bout of Heads Up time
again! I have just finished reading an extremely
frightening report that even if only partly true
should actually go a long way to frighten the
pants off most free thinking level headed
individuals. The report was the final draft of
a study into the dramatic rise in the
indebtedness of the average young American. It
really was a case of “Generation X has given way
to Generation Broke”. As of the date of this
article, the outstanding US National Debt was in
excess of $8 Trillion and given the estimated
population of the US is approximately 300
million that makes that each citizens share of
this debt is roughly $28,500!
The other really frightening sub plot to this
entire catalogue of disasters was that by and
large we are all spending merrily away, charging
things to plastic left right and centre in some
vain attempt to by some sort of fiscal happiness
but the sad thing is…….no one really knows or
has figured out yet what it would take or how
much we need to actually make ourselves happy?
Now this really is worrying.
It has long been an established line of
thinking that lurking not far beneath the
surface of us all lies a fiscal monster just
waiting for the right moment to break free of
its shackles and unleash itself upon the local
High Street or Mall like some fiduciary out of
control Tyrannosaurus Rex.
But wait, the Dinosaurs had very little
brains and so could not evolve. Have you ever
been on the inside of a Retail Store on the
first day of the sales and seen the unspeakable
savagery unleashed by the pent up force of those
desperate for a bargain? If you had, you would
realise why the Tyrannosaurs have been replaced
by much smaller and more lethal creatures called
“The Consumer”.
If we take a look at the financial landscape
we might get some idea of the cause or at least
some insight into the background of where we are
at the moment. Get a load of this……..the average
household juggles with an amazing 16 credit
cards! SIXTEEN! Now this figure is not
necessarily that frightening until you take into
consideration the fact that the real problem is
that the average family or consumer doesn’t
clear their balances on a Monthly basis.
Who does I hear you ask? Indeed if we all did
then the Credit Card and Financial Houses would
soon go bust but therein lies the other part of
the problem. The rise in availability and
variety of the Credit Card itself and this takes
me rather neatly back to the opening paragraphs
and the whole “Generation Broke” Concept.
Today’s 18-24 year olds are experiencing the
twin pronged assault of two financial dangers:
dramatic rises in the cost of college and
University fees and fanatically aggressive
marketing of credit cards on University and
College Campuses.
It is very much a case of “Pssst, wanna a
shiny new credit card….no problems……..sure, how
many do you want? Just sign here”.
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