Hold the Dollar Rule the World

Written by Ida Byrd-Hill

Today, all Americans are engrossed withrepparttar news reports ofrepparttar 151107 stock market decline. You’ve heardrepparttar 151108 news reports and said to yourself “ I’m glad I am not obsessed with money likerepparttar 151109 rest ofrepparttar 151110 country.” The question you should be pondering is “Why is our country obsessed withrepparttar 151111 stock market?”

The stock market representsrepparttar 151112 bedrock of American society – capitalism. The stock Suppose an individual invested $1000 a year every year from 1925 to 2000 in companies that revolutionizedrepparttar 151113 20th century – AT&T, Ford, General Motors –, their estate would have grown to more than $$69,559,828. (This assumes no additional deposits and an average rate of return of 12.70%)

The average American enjoys enormous accumulation of wealth/capital/money viarepparttar 151114 stock market. This wealth/capital/money has given them freedom; hence they are very concerned aboutrepparttar 151115 upward and downward spiral ofrepparttar 151116 market.

You are thinking “Freedom?! How can money bring freedom? We have freedom given to us byrepparttar 151117 Constitution.” Yes, we have implied freedom, yetrepparttar 151118 magnitude of freedom an individual or family enjoys can be directly related to their wealth ranking in society. This philosophy has been fundamental in America.

Stop Planning for Future Retirement , Live Today in Style

Written by Ida Byrd-Hill

Forrepparttar past 85 years,repparttar 151106 financial services industry – banks, financial planning, insurance and stock brokerages have experienced double digit growth by cajoling frightening individuals byrepparttar 151107 prospects of poverty and lack during retirement. Everything from radio, televisions commercials and print ads projectedrepparttar 151108 bleak prospects for retirement if individuals did not save and invest. Individuals born between 1912 to 1945, currently ages 60 to 93, responded to this marketing strategy as they experiencedrepparttar 151109 pain ofrepparttar 151110 Great Depression.

The Great Depression causedrepparttar 151111 largest economic slump in industrialized nations ever. The Great Depression began in 1929 whenrepparttar 151112 stock market collapsed. Stock market values dropped eighty percent. Not only did individual investors lose big, so didrepparttar 151113 banks. Many banks had a large chunk of stock in their asset portfolios. So much so that 11,000 banks out of 25,000 collapsed inrepparttar 151114 U.S. alone. Individuals lost on three fronts. They lost money inrepparttar 151115 stock market, inrepparttar 151116 bank and their jobs. The burgeoning manufacturing industry saw a 54% drop in output causing 25 to 30% ofrepparttar 151117 workforce, approximately 12-15 million people, to go on layoff.

With so many people out of work, breadlines and soup kitchens became common place. People had no money to feed, clothe or house themselves. Unfortunately,repparttar 151118 government did not haverepparttar 151119 resources to help them either. The impression ofrepparttar 151120 Great Depression has been firmly imprinted onrepparttar 151121 minds of individuals, ages 60 to 93, born 1912 to 1946. Most have vowed to themselves they would never again sufferrepparttar 151122 lack they suffered duringrepparttar 151123 Great Depression. Hence, these individuals are frugal; budget conscious savers who disdain credit and speculative investments. They soughtrepparttar 151124 safety of guaranteed investments andrepparttar 151125 security of insurance companies who weatheredrepparttar 151126 Great Depression. Withrepparttar 151127 evolution of Federal Deposit Insurance Company (FDIC), they spread their money across several banks. Although they have money in banks and stock brokerages, they do not really trust banks or stock brokerages. They trust FDIC and SIPC (Security Investor Protection Corporation).

The financial industry evolved aroundrepparttar 151128 financial behaviors of these Depression Era individuals. These individuals amassedrepparttar 151129 greatest amount of wealth inrepparttar 151130 history ofrepparttar 151131 United States. Because they were solely afraid of suffering another Great Depression.

The financial behavior ofrepparttar 151132 Depression Era individuals is exactly contrarian to those born 1946 to 1964. These individuals are called Baby Boomers. These individuals never saw lack. Their mothers, once house wives, worked inrepparttar 151133 manufacturing industry during World War II. When their husbands returned fromrepparttar 151134 war, many women continued to be employed outside ofrepparttar 151135 home. Her employment brought new affluence torepparttar 151136 home. It also brought her intorepparttar 151137 forefront of financial decision making. Women, now, influence 80% of financial decisions. Afterrepparttar 151138 World War II, The US government created an economic boom bringing new jobs and more income thatrepparttar 151139 US economy has ever seen. Baby Boomers have always seen good economic times. They have never experienced financial lack, financial lost or suffering.

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