Half of us have one month of cash cushion if laid off

Originally published Saturday, March 21, 2009 at 12:00 AM

By Jennifer Waters

MarketWatch


Americans are in a collective state of financial depression as many admit they could cover their bills for two months at most if suddenly jobless, a nightmare more and more worry may come true.

A group of surveys found a growing number of consumers are a few paychecks away from a household collapse. Even as many scramble to shore up savings, rainy-day funds are being depleted to cover food and energy bills, mortgage and car payments.

A large number of households said they couldn't tolerate even one missed paycheck.

"This is flashing so bright-red," said Paul Ballew, senior vice president of Nationwide Insurance. "Roughly 60 percent of the population was ill-prepared (financially) before the meltdown."
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Well, this is definitely something many of us can relate to unfortunately.

50% of those Americans who did this poll stated they would not be able to cope with more than two months, meanwhile 28% said they could not tolerate more than two weeks to be able to pay for their necessities, and there are people who are in worse a condition unfortunately.

Even though many of us have food in storage alongside many other needed items, when it comes to money most Americans, and most of the world will be in desperate situations if the global economic crises worsens.

But then again, and as Emmanuel Rham said,

You never want a serious crisis to go to waste..

audio.wrko.com...

Rham has not been the only official of the current administration saying this, even Hillary Clinton stated to the world at the beginning of this month, and I quote:

BRUSSELS (Reuters) - Secretary of State Hillary Clinton told an audience Friday "never waste a good crisis," and highlighted the opportunity of rebuilding economies in a greener, less energy-intensive way.

in.reuters.com...

She also stated to the Chinese government, and to the world that no Human Right can interfere with other crisis, such as the economic crisis, and the global warming crisis, etc.

"Human rights cannot interfere with the global economic crisis, the global climate change crisis and the security crises," Clinton said in talks with China's foreign minister.

www.twine.com...

This is the perfect time for TPTB to set even more draconian laws meant to control us, and they can't lose this opportunity to pass laws which would have never been possible at other times.



[edit on 23-3-2009 by ElectricUniverse]

I find that figure (1 month) hard to believe considering most of us live from pay to pay.

I'd say most people have a month of reserves financially if they are also including paying stuff on credit cards until the cards are maxed. Personally from what I've seen is that most people can only go for a few weeks at best, are locked into check to check hell.

Two weeks sounds more accurate. Heck I know people who are considered rich who have recently been laid off and they at best have maybe 4 months before they too are completely underwater too. Higher over head I guess. True they could downsize and get by for longer, but if even they recognize that they are screwed if anything were to or has happened and their rich then it's safe to venture that most of the country would be homeless in less than a month if they were to loose their jobs and maybe not receive any form of unemployment, which helps but is about 60% less than what you would need to survive.

Yes, it is unfortunately that this is true. For the most part people don't really have much choice. At least most people don't.