Americans are Hoarding Money

Discussion in 'Financial Cents' started by Motomom34, May 10, 2018.

  1. Motomom34

    Motomom34 Monkey+++

    Americans are hoarding money, yes you read that correctly. I heard Glenn Beck talking about this and have seen very few articles. It is true, Americans are hoarding money in their checking accounts. The word hoarding implies to me that we all are keeping something we shouldn't. The article speculates that people are "hoarding" their money because they feeling insecure about the economy, whether currently or from lessons learned 10 years ago. The article also states that the average US household owes $8,600 on credit cards, interest rates on credit cards is high so why are Americans sitting on their money?
    Here is the article:

    At the end of the article, the author said:
    While it’s not unusual for households to keep some extra cash in their checking accounts to pay monthly bills, a national average of over $3,700 is way over the top. Something else is going on. If I figure it out, I’ll be sure to let you know. In the meantime, I would love to hear from any of you who may have an idea about what is happening on this subject.

    What is going on? Allegedly we are in good times so why are people hoarding their money?
    Bandit99 likes this.
  2. ghrit

    ghrit Bad company Administrator Founding Member

    From the article -
    "The consumer in banks, thrifts and credit unions by region, state, city and asset size keeps warehousing more checking dollars. The average Joe and Jane still are very leery of the economy.
    Emphasis mine. What would be more revealing would be to know if those holding money in their checking accounts also have high credit card balances. Without that fill in information, the discussion has no real significance.
    Bandit99 and Tully Mars like this.
  3. Gator 45/70

    Gator 45/70 Monkey+++

    Hoarding vs Saving?
    I save a few coins around the house and other places because its no ones business what I have ratholed for a TSHTF rainy day
    Ganado, Motomom34, Tully Mars and 4 others like this.
  4. ghrit

    ghrit Bad company Administrator Founding Member

    Hoarding or saving in a checking account has a bit of sense, given that savings accounts aren't exactly paying high interest. Checking accounts are as good as anyplace to keep "excess" funds that you really don't want in the mattress. Either way, there isn't enough interest paid to count.
    Bandit99 and Gator 45/70 like this.
  5. snake6264

    snake6264 Combat flip flop douchebag

    The economy may be strong but workers are working for less without benefits
    The rich get richer
  6. BTPost

    BTPost Stumpy Old Fart Snow Monkey Moderator

    I read somewhere in the last few days, that CryptoCurrency Billionaires are finding places in Second World Countries to have Places (Land & House) and keep their Cryptocurrency Files so that their First World Countries of Residence can't GET TO, or TAX their CryptoAssets... Looks to my Eyes that this is a Fools Errand, trying to Keep /Safe and Hide, a CryptoCurrency that depends on the Internet, for Trading and Value... What good are all those 1's & 0's, if no one will Trade you REAL STUFF for them after a collapse of the World Economic System... Same with Banks, with Checking & Savings Accounts... What good are they if the .GOV Closes the Banks for a "Banking Holiday" after the collapse of a countries Economy.... Just LOOK at what is happening in Venezuela, & to a lesser extent, Argentina.... 4000% Inflation, and NO ONE wants your Paper Money for ANYTHING but to wipe the Arse with... But if you have FOOD, or Fuel, or tangible Assets, you are Good to G0, IF, and ONLY IF, you can hold on to those Assets, AND LIVE.... As long as we "Believe" that our Fiat Currency has Value, it is a good way to exchange Assets and Value, but if NO ONE "Believes" any more, it is a "Fart in a Hurricane"... Much better to have Physical held ASSETS, and universally recognized Trading Media... than some Third Party held Assets, whose Value depends on some .Gov Regulations, or someones Idea of what 1s & 0s are worth...
  7. ochit

    ochit Monkey+

    To me that is the best place for money why have more than one account or more cards. I agree with those here that post who's business is it anyway, Illegals send tons of cash south daily if people are so concerned why don't our fearless leaders tackle that issue.
    Hoarding money is like collecting old whip topping containers value is in the eye of the beholder and, if our money take a dump I would rather have toilet paper than green paper of any denomination. Look up Venezuela's top dream items and they are sanitary articles feminine and other. I remember where governments made bank holidays and when they reopened poof a bunch of those peoples money was revalued those that had more than what the government decided was normal they stole.

    Money here is fiat currency in recent years some places don't accept dollars in fact there are currencies in the united states that are not reserve bills all taxes owed have to be valued in dollars if you get a perk worth value it needs to be added as income in dollars there are some nations that use our money as their own Ecuador, East Timor, El Salvador, Marshall Islands, Micronesia, Palau, Turks and Caicos, British Virgin Islands, Zimbabwe. of course there are game businesses that require that you trade in tokens an extreme example but at some point some of your dollars were traded in for other currency and vise versa.
  8. TnAndy

    TnAndy Senior Member Founding Member

    From the article: "When the data above came out early last week, there was speculation that having so much cash in bank accounts must be a negative for the economy and bearish for stocks. Granted, if Americans were spending that cash and buying more shares, the economy would likely be stronger and stocks might be even higher. But they’re not spending it."

    I had to laugh at the underlined part. Stocks are up in rare air territory right now, and only a fool (or someone trapped in a 401k) would be buying at this point. Folks on Main St know this even if financial columnists have their heads up their rear ends.

    And then there was this jewel: "At the end of the day, the question is: Why are Americans hoarding cash in low/no-interest checking accounts while at the same time racking up record amounts of high-interest credit card debt?"

    Guy assumes the same people with extra in their checking accounts are ALSO the same ones with large credit card balances. I can say I'm not. Our checking balance runs quite a bit over that 3700 mark, and we pay our credit cards off each month....never paid a dime of interest the whole time we've had cards.
  9. oil pan 4

    oil pan 4 Monkey+++

    I'm guilty.
    I don't keep it in my checking account.
    Only an idiot would keep a large amount of money that easily accessible in their checking account.
  10. ochit

    ochit Monkey+

    look up Ann Barnhardt's videos on why she bailed out on the stock market as fas as anyone knows 90+ percent of it is automated trading in and out in less than a second the individual is trapped in the flow it's good as long as the flow is up not so good when it rushes out your shares will languish until the big boys sell off at their price point.
    Bandit99 and Gator 45/70 like this.
  11. HK_User

    HK_User A Productive Monkey is a Happy Monkey

    Have you seen how low the IRA/CD/Retirement account percentage is?

    Here it is
    Interest rate:

    I get 4% on a 30 year old IRA, why should I spend it down. BTW IRAs are also considered SAVINGS>

    Never Trust a BANKER to tell the truth.
    Last edited: May 10, 2018
    Motomom34 and Gator 45/70 like this.
  12. BTPost

    BTPost Stumpy Old Fart Snow Monkey Moderator

    The only way to deal with the Banksters Money.... Use it all Month, and then Pay it Off, the Day before the month closes... It really hits those evil Banksters in the Pocketbook... NOT... They make their money from the 2-3% that the Stores pay for the CC Service by the CC Companies, of which a chunk gets kicked back to the Bank by the CC Companies...
    Gator 45/70 and HK_User like this.
  13. HK_User

    HK_User A Productive Monkey is a Happy Monkey

  14. hot diggity

    hot diggity Monkey+++ Site Supporter+++

    I try to keep a minimum of cash because over time I've found that it is worth less. (worthless) While things that I've invested in have appreciated tenfold. There's also the travel, great healthy food and drink and the ability to help out others. These things are priceless and weigh nothing.
  15. ochit

    ochit Monkey+

    I get better odds at the casino :D
    Altoidfishfins and Lancer like this.
  16. oil pan 4

    oil pan 4 Monkey+++

    I'miss already convinced the only way I can retire is saving my own money and flipping platinum group PM.
    HK_User likes this.
  17. Tully Mars

    Tully Mars Metal weldin' monkey

    Didn't we use to call that saving for a rainy day?

    You are exactly right. That's why they use that term-to make the sheeple feel like they are doing bad for not trusting in the .gov to provide.
    Amen Brother!!
    Motomom34, Gator 45/70 and HK_User like this.
  18. hot diggity

    hot diggity Monkey+++ Site Supporter+++

    I'm happy to be well below average in credit card debt.

    Not paying a dime in interest on credit cards is one of those things I've always tried to reach kids. That and always driving at exactly the speed limit to never get a speeding ticket. It's a shame I didn't always follow the speed limit advice overseas. I might have more cash to hoard. :)
    ochit, Motomom34, Gator 45/70 and 2 others like this.
  19. ghrit

    ghrit Bad company Administrator Founding Member

    Well, yes and no. Rainy day money went into a saving account, not checking; checking accounts were to cover the monthlies. Then the checking accounts started paying interest and the mix got messy. Now, with both types of accounts sucking wind, the mattress looks pretty good if you don't trust the stock market.
  20. HK_User

    HK_User A Productive Monkey is a Happy Monkey

    But if the market tanks who's gonna buy your PM.
    No money means nothing sells.
    ochit, Motomom34 and Gator 45/70 like this.
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