Nightmare Economy to Have ‘Indelible Impact’ on How Young People Think About Money

The jumps in rates of borrowing to rates of saving for young people are huge, and Moody’s economist Mark Zandi thinks it’s because we’re scared, which: we are. Yes. That is a true assumption. “It is unclear how long this heightened risk aversion will last, but I suspect the last few years will have an indelible impact on how younger households think about their finances.” NO DUH MOODY’S.

Where Did Our Wealth Go?

Even though data from the Federal Reserve shows that Americans are carrying less credit card debt, it also shows that we're worth 40 percent less than we used to, and that more families are taking out loans to pay for college, "leaving the median level of family debt unchanged."

Heidi Is Not Impressed

Heidi N. Moore has lots to say—and nothing good—about the fiscal cliff deal (“deal”) passed by the Senate early Tuesday morning: “So, after a day, and week, and year filled with manufactured drama, the US Senate not only failed its only goal – reducing the US deficit – but also built a mountain range out of the molehill of budget talks.”

And if you’re in the mood for more good (“good”) news, her piece about the longterm unemployed and how a real deal likely wouldn’t help them anyway is a doozy (“The predicament of the long-term unemployed only has a passing relationship to the fiscal cliff. There happens to be no one in the government who can put their hand up and protect the unemployed”).

“Vote For Us Or The Recovery Gets It”

Ezra Klein makes the very interesting point that perhaps Mitt Romney might be The One To Save Us All.

We Need Young Blood

Jordan Weissmann argues for increasing immigration to grow the economy because we need young people and people who will have babies and also skilled workers, which, ha, WE DON’T HAVE. Scientists! Engineers! And lest you think we don’t need more breeders: “Just ask Japan what it’s like when your country turns into a nation-sized nursing home.”

I didn’t ask Japan but I asked Google, and to start, the retirement age goes up. Taxes go up. Spending on education and defense go down. Elderly care costs go up. Grandmas turn to crime. Dark days.

 

Why We Should All Worry About California

The Week's primer to California's financial apocalypse is servicey.