I know it sounds hard to believe, but Congress is helping college students save money — on textbooks that is. This month, more than 18 million students will be attending college and according to the College Board, spending an average of $1,000 on textbooks.
Professor Shiller is worried about social psychology (I tend to be much more data driven). From Robert Shiller in the NY Times: Fear of a Double Dip Could Cause One [T]here is still a real risk of a double-dip recession, though it can’t be quantified by the statistical models that economists use for forecasts.
While Americans from Wall Street to Main Street focus on much-needed financial reforms that will set and enforce clear rules across the financial marketplace, we also need to recognize that most Americans don’t have the knowledge and skills they need to make the right financial decisions for themselves and their families.
Everyday, we make financial decisions that ultimately affect whether or not we will be able to live independently and retire comfortably. Do we opt for the Starbucks Caramel Latte or the Dunkin Donuts regular coffee? Do we hop on the subway or hail a taxi for the morning commute
Note: This is not MEW data from the Fed. The last MEW data from Fed economist Dr
This is amusing … From the Telegraph: FSA treats mortgage lenders like ‘drug dealers’, says CML chief Hitting back at the idea that lenders are “evil” and reckless, [Council of Mortgage Lenders (CML) chief] Matthew Wyles said the industry should be allowed to treat its customers as adults, respecting their right to make their own decisions. He said: “I have a sneaking suspicion that it’s the way that regulators see consumers – as wanton children who have a tendency to want what isn’t necessarily good for them, and for whom Nanny knows best
“You’ve got to stand for something, or you will fall for anything.” - John Mellencamp Many of my columns are about people who make bad financial decisions. People who take out payday loans and run up debts on high-interest credit cards
Sep 10
Professors Atif Mian and Amir Sufi (both University of Chicago Booth School of Business and NBER) published a new paper: The Household Leverage-Driven Recession of 2007 to 2009 This is related to their paper earlier this year: House Prices, Home Equity-Based Borrowing, and the U.S. Household Leverage Crisis, See: MEW, Consumption and Personal Saving Rate A cross-sectional analysis of U.S.
From the NY Times: Retailers See Slowing Sales in Back-to-School Season Halfway through the back-to-school shopping season, retail professionals are predicting the worst performance for stores in more than a decade … The National Retail Federation, an industry group, expects the average family with school-age children to spend nearly 8 percent less this year than last
All of this, all of this, all of this looks so easy. But all of this, all of this, all of this ain’t so easy.
