{"id":42976,"date":"2019-01-20T11:04:08","date_gmt":"2019-01-20T16:04:08","guid":{"rendered":"https:\/\/olduvai.ca\/?p=42976"},"modified":"2019-01-20T11:04:11","modified_gmt":"2019-01-20T16:04:11","slug":"the-hidden-revelation","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=42976","title":{"rendered":"The Hidden Revelation"},"content":{"rendered":"\n

The Hidden Revelation<\/a><\/h3>\n\n\n\n
\"\"<\/a><\/figure><\/div>\n\n\n\n

The current government shutdown (the longest in history) comes with a hidden revelation: Millions of Americans are financially unprepared for the next economic downturn. Worse, they are highly vulnerable with few protections.<\/p>\n\n\n\n

10 years after the financial crisis the economic recovery has left millions behind with little to no savings and the government shutdown serves as a preview for what will happen once unemployment rises.<\/p>\n\n\n\n

Within just a few weeks into the government shutdown people are struggling to cope. We hear of stories of people turning to food banks<\/strong><\/a> to feed their families during the shutdown. We hear stories of people who are in dire straights because they can\u2019t get loans<\/strong><\/a> and of people who can\u2019t pay their mortgages as payments come due<\/strong><\/a>. That\u2019s not even a month into the shutdown.<\/p>\n\n\n\n

Why do a few weeks of no pay turn into a crisis for many families? Simple: Nearly 80% of Americans<\/strong><\/a> live paycheck to paycheck. That\u2019s a problem when you have little to no savings. In fact it\u2019s akin to playing financial Russian roulette.<\/p>\n\n\n\n

And the problem is terrifyingly pervasive. According to a recent GoBankingRates survey<\/strong><\/a>only 21% of Americans have more than $10,000 in savings with nearly 60% having less than $1,000 in savings:<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

This savings free game of complacency works as long as people have a steady paycheck coming in and as long as rates stay low. But they are not staying low even though the Fed may stay patient again this year as they have proclaimed in recent days.<\/p>\n\n\n\n

As a matter of fact the cost of carrying debt, especially the revolving credit card type have exploded higher since the Fed started slowing raising rates. Think I\u2019m exaggerating? How about this: Interest rates on credit cards by commercial banks are now as high as they were in 2000:<\/p>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

The Hidden Revelation The current government shutdown (the longest in history) comes with a hidden revelation: Millions of Americans are financially unprepared for the next economic downturn. Worse, they are highly vulnerable with few protections. 10 years after the financial crisis the economic recovery has left millions behind with little to no savings and the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[195,1752,9331,7542,24047,23808,827],"class_list":["post-42976","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-economic-contraction","tag-government-shutdown","tag-northman-trader","tag-personal-savings","tag-sven-henrich","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42976","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42976"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42976\/revisions"}],"predecessor-version":[{"id":42977,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42976\/revisions\/42977"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}