Thursday, February 28, 2008

Playing Stash the Stimulus

Go figure: No sooner does Suze Orman admonish us Americans against spending our upcoming tax rebates than does Bloomberg plop out a survey which suggests that many folks were listening to her:

Bloomberg: Americans Plan to Save Rebate Checks

Well ... either that, or they were drunk.

As we know, Americans have "planned" to do lots of well-intentioned things before — like saving money — but it just never seems to work out. They're always interrupted by unforeseen emergencies, like Christmas. Or 10%-Off sales at Best Buy. Or Toyota's twice-per-year Annual Sales Event.

What Bloomberg's survey tells us is that:

Only 18 percent of respondents said they will spend their rebate on purchases, while slightly more than three in 10 said they prefer to use the money to pay off debt, and a third said they'll pocket it.

Sixty percent of folks say they'll either use it to pay off debt, or save it outright?

Hmmmm. I'll take the under.

A majority — 57 percent — said Bush hasn't taken sufficient steps to aid the housing industry and help holders of subprime mortgages, a growing number of whom face foreclosure because of rising monthly payments. Among households with annual incomes below $40,000, almost seven in 10 said the president hasn't done enough.

Now that's more like it: Let's be sure to complain about how much more hand-holding the government should be doing for us. And, just for good measure, let's do the complaining in a survey that asks how we plan to spend the $168 billion that Uncle Sam is about to dole out.

It's pretty sickening, really.


— Posted by Michael @ 8:03 AM


My theory is that this is a plan to get the money over to the banks. So really, it doesn't matter if you pay down debt or put it in savings. It still winds up capitalizing the banks. I'd love to save mine, but we truly need better living quarters and a water system.

** Comments Closed on this Post **

Thoughts on my personal finances, goals, experiences, motivations, and accomplishments (or lack thereof).

My financial life began turning around when I took responsibility for it.
— Dave Ramsey


Start (2005-12): ~$21,900
Currently: $0
[About Our Debt Paydown]


Savings Goal: $15,000
Currently: ~$15,115
[About Our Liquid Savings Goal]