The genie’s out of the bottle
The genie is out of the bottle. Inflation has returned and wreaked havoc on the American economy, the middle class, and the working poor. Last week World Bank president David Malpass repeatedly warned that stagflation could return citing similarities in monetary environments seen in the 1970s. Stagflation- slow growth or stagnation of the economy coupled with high prices. A toxic mix for any economy.
However, for retirees, it is inflation that’s the nightmare scenario that erodes their ability to maintain the same standard of living despite faithfully setting aside money for retirement for decades. Consequently, retirees have a handful of choices to compensate for the increasing costs of living: increase their systematic retirement withdrawals, cut expenses, return to work part-time, or tap into existing assets.
For the last two…
6 comments
Thanks for all your insight and information.
I have been a Reverse Mortgage Loan Officer for 15 years and seen it all.
And, YES, I have a Reverse Mortgage. I put my mouth where my Money should be,
Kenneth Craynon
ken.Craynon@SNMC.COM
720-792-2171 Office
513-315-0058 Cell
Thanks for all your insight and information.
I have been a Reverse Mortgage Loan Officer for 15 years and seen it all.
And, YES, I have a Reverse Mortgage. I put my mouth where my Money should be,
Kenneth Craynon
720-792-2171 Office
513-315-0058 Cell
Shannon,
This was a very good broadcast, timing was right on. Keep up the good reporting, we in the industry need you!
John A. Smaldone
Reckless Advice- How true. Love that terminology. Great podcast as usual.
Good sound advise thanks Shannon
Yesterday, Chuck Todd addressed in his “data download” segment on “Meet the Press” the complete collapse of confidence among the American people as to the ability of our government to fix the problems (especially the economic problems) we face today. The segment was like a replay of President Carter’s now 1979 infamous speech which critics’ call his “malaise speech.”
The Carter years all but fully discredited Keynesian economics. One of the principal “axioms” of the economic theory established by liberal Englishman and economist John Maynard Keynes was that there was an inverse tradeoff between the unemployment rate and the inflation rate. The liberal Carter Administration which heavily leaned on Keynesian economics, undid that axiom by proving that the rate of unemployment could rise materially in a time of high inflation. It is so bad that the current Administration will not heed the warnings of the economic leader of the Clinton Administration, Dr. Larry Summers.
Having taken basic economics during the Nixon and Ford Administrations, Keynesian economic thought reigned supreme at least in the classroom. Yet with the help of President Carter (and perhaps “Billy Beer” so named after his brothers brew) and over the outrage of unrecanted Keynesian economics was laid bare as inadequate, incomplete, false to a significant degree, and, generally misleading. That created such a hole in then current economic theory that the rather slanted views of Reagan economic advisor, Arthur Laffer, ruled during the Reagan Administration.
In many ways, the Biden Administration has shown itself to be as inept and hapless as the Carter Administration when it comes to restoring US economic prowess and consumer confidence. This situation has grown so bad, that leading members of Biden’s own political party are openly speaking out by name against the re-election of the President in NYT articles.
Can the Fed alone cause this economic juggernaut to shift from its present course? Like the late 1970s, Congress seems resigned that it cannot do much to change the situation for the better. So here it is once again staring us in the face — malaise (2022 style).