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Warren BrusseeAuthorThe Second Great Depression: Started 2007/2008 Ending 2020 - 2nd Edition June 7, 2008Select an Audio Format
The exuberance resulting from the overheated stock market of the 90s caused consumers to stop saving and go into debt. Then, the dramatic drop in mortgage rates enabled people to refinance their homes and go even further into debt. People are no longer living on what they can afford; instead they are living the lifestyle they think they deserve, costs be damned! With interest rates increasing, savings rates near zero, and debt at its maximum; many people will be pushed over their debt limit, having homes foreclosed by the banks or going into bankruptcy. Others will heed the warnings and reduce spending, causing a dramatic slowing of the economy. Other problems related to the economy, such as balance of payments and deficits, are discussed. But it is consumer debt that will trigger the depression. Even during a depression, people will need to save for their future. To survive this depression, savings should be in Treasury Inflation Protected Securities, and the stock market should be reentered only after it drops 73% from its 2004 level. Included charts show required savings for retirement. These charts give different options as to the number of years before retirement, expected pension, and the amount of existing savings.
Warren Brussee spent 33 years at GE as an engineer, plant manager, and engineering manager. He earned his engineering degree at Cleveland State University and attended Kent State towards his EMBA. The author has written two other books, Statistics for SIX SIGMA Made Easy and All About Six Sigma. "The Second Great Depression: Starting 2007, Ending
2020" contact information Warren Brussee
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