FINANCIAL INSECURITY

the following survey results reflects on a society of people working very hard to make "ends meet" each and every week. not the best of situations for an highly leveraged society of people. its also a potentially disasterous situation for the banks that have been so willing to lend to these 'paycheck to paycheck' consumers. with an insatiable appetite for all the new stuff that corporate america's advertising engines keep telling us we need, we collectively seek out new and innovative ways to satisfy our desires. in doing so, we are able to keep living the american dream while we create a future nightmare of financial distress.

the american "rat race" provides the impetus for huge sales of anti-depressants and sexual aides, and it is setting the stage for lots and lots of unprepared employees who may continue to see corporate america laying off more and more of their friends, loved ones, and g-d forbid themselves. without any financial cushion, and lots of debt, the respondents, along with their peers, face some serious financial problems. many seeking the american dream of a new home have been fortunate enough to get a great deal on rates and down payments in the last 2 years. with their new homes, they needed new furniture, electronics, and appliances all financed by cheap credit with easy terms, some of which they got from the equity in their newly acquired homes. now, not only are they relying on their paychecks to stay current on their committments, but lots of banks are relying on those paychecks to get there monthly payments as well.

here is the survey i am referring to>>>>>>>>>>>>>>

By Jane J. Kim
Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--Most workers are living paycheck to paycheck, hurt, in
part, by a weak economy and rising health-care costs, according to a new study.
Although younger workers are more likely than older workers to live paycheck
to paycheck, slightly more than half of those nearing retirement age depend on
each paycheck, according to MetLife's 2003 Employee Benefits Trend Study,
scheduled to be released this week.
Individuals have been "challenged" by a weak economy and have seen the value
of their own assets decline, said Craig Guiffre, vice president of national
accounts at MetLife. And although overall inflation has been low, certain costs
are rising, such as medical care and college tuition. Meanwhile, employers have
been shifting more of costs of benefits to employees, he said.
"The percentage of people in the boat of people living paycheck to paycheck is
going up," he said.
Among those with children under 18, more than half, or 57%, rely on their
paycheck to manage finances. Even among employees earning $75,000 or more a
year, more than 34% live are relying on their paychecks to get by.
In fact, the survey found there were few differences across age, gender or the
respondents' ethnicities. "The interesting thing was there weren't huge
differences between all the populations," Guiffre said.
Due in large part to a heavy reliance on work income, more than two-thirds of
employees are extremely or very concerned about making ends meet. For example,
a majority of respondents, or 71%, do not have or don't know if they have a
financial plan.
"The good news is that even for folks who are living paycheck to paycheck, it
doesn't have to be expensive" to put together a financial plan, Guiffre said.
People can find free information and financial planning tools online or can get
information from their employers. And since most companies are in the midst of
open enrollment, now is a good time for workers to ask their employers for more
information. Nearly two-thirds of employees surveyed said they spend less than
an hour each year considering their household's financial needs during their
company's open enrollment for employee benefits.
The study consisted of two separate surveys: one survey polled 728 full-time
employees, age 21 and older, at companies with at least two employees and had a
margin of error of plus or minus 3.1%. The second survey polled 1,548 human
resources and benefits executives and had a margin of error of plus or minus
2.1%. Both surveys, which were conducted by NFO World Group, were conducted
online in September. END>>>>>>>>>>>>>>>>>>>>

paycheck to paycheck consumers are problematic in a fragile economic recovery. the banks that hold the loans will soon face problems handling the non-performing loans and credit losses.

have a grateful day!

larry