Glazer: Unedited Scribe Asks, “Can the Economy Come Back?”

boomersBaby Boomers control over 70% of the US economy. They have all the money. For the most part, SAVED UP. With no interest from CD’s or Savings, no safe investments, and deep fear of the stock market, they hold their money tight to their vest. Can the economy come back without the ‘boomers?’

Yep ‘Boomers’ are from 40′ to 60’s today. Some are already retired. Many own the major business concerns in this city and around the nation. They are the C.E.O’s of well over half our companies. Yet their spending habits have dropped way off. Why? Fear. They saw their stocks and 401K’s take huge hits these past ten years plus. Their CD’s pay almost nothing. Their children are in college or into the beginnings of their chosen fields. They are most of our nations ‘rich’ folks. Guess what, most of them feel they are nearly BROKE. Their bills are higher than their income. NO not all, but the majority. If they don’t spend,travel, go out or buy new homes, our economy may be on lock up.

You say ‘not true.’ Let me ask you this: Think of those you know who fit this picture. Almost all of them are still in that home they bought years ago, are saving for the future so their kids will have a nice payday when they are gone. The late middle agers worry about their health, are very interested in their medical situation, health and staying younger. It’s true for most it’s just in their heads. Lots of talk and not much action. One thing is for sure, they ‘ain’t’ spending any of those hard earned savings dollars anymore.

debtSure the wife uses the credit cards, that helps, but even those days have limits. Vacations are way down. We live longer and most feel with little new income, the savings is for ‘old age and the kids.’

I have a few good buddy’s that have well over a million bucks in the bank. NONE of them will go on any meaningful vacations, rarely go out for anything past an early meal in the neighborhood and talk about doing all this in the future. WTF. The future is behind you people.

Example: I have a close friend who has 2 million in green backs put in the bank. He owns his home, paid for, is in great shape, divorced, has two grown children that are in fine jobs, but complains daily that he is broke. I asked him to go on a fun vacation with me several times and several locations. “No I can’t afford that right now, maybe in a couple years when my kids are better set and I’m not so busy with work.” He is semi retired, a millionaire and drives a leased two year old middle of the road car, lives in the home that he bought in the late 70’s and is always planning to move to a warmer, more exciting city. The guy has realtors in three cities sending him prices and locations for a ‘new’ home. He will never move to any other city or ever sell the home he is in until they put him in the old folks joint. By the way his ex wife is worth ten times his money, his kids are in better shape then he ever was, doesn’t matter….’saving for the future.’ Does this sound familiar?

Clearly banks will have to loosen up credit, big time, for the economy to really grow. CD’s have to have value and pay at least 4-6%. It’s true that people with less income and savings go out more, travel more and based on their personal self worth, spend more. I guess they are younger and feel, ‘what’s the difference.’ No they don’t go to exotic places but they will go somewhere.

The-American-DreamI don’t see how this economy can really improve without the boomers feeling safer about their bank accounts. These Americans must start living again. They need to enjoy their hard earned dollars to a much greater extent. I believe they would if banks were paying them like they used to in the 90’s. It seems to me we need to open up credit for housing, credit cards with much lower interest rates and yes go back to some of the things that got us in this mess. Just be more careful. There is a happy medium. Giving back nothing on savings is NOT THE AMERICAN DREAM. It’s the American nightmare. It has not worked. We need everyone involved. Just because we get the national debt down does not mean people will go out and spend money again. The individual needs to feel he has protection and income.

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33 Responses to Glazer: Unedited Scribe Asks, “Can the Economy Come Back?”

  1. harley says:

    let me be the first to welcome you back glaze.
    Good to see you up and running.
    Saw the lotus yesterday…niiiiiccccceeeeeeee….
    I knew that hearne would crack under the pressure (lol)

    • CG says:

      Well thanks Harley, but Hearne and I agreed for him to keep me on as an interviewed person only…maybe, just maybe a special now and again…I have been offered to go to TONYSKANSASCITY.COM and I think thats best for all.

      Hearne and I have been pals for more than 20 years and I don’t want this to come between us..the man wrote over 4 or 5 hundred stories on me in the Star from 92-his last days there…he helped make me a name in this city and he also wrote tons on Stanfords and Stan…always being decent and fair with us…plus he and I have hung out for years. The man is now married and lives in KU country…so seeing him often is less likely now..but we will always be close.

      I see his point and I think he sees mine…I just was on here too much and this is HIS site, not mine. That’s the main thing…Hearne is a very good reporter, has great instincts and will continue to deliver some fantastic news and stories…Jack is also sharp…all these guys have some talent…I am maybe a little over the top compared to them..I get it…Harley as you know none of my last 40 or 50 stories were on me and sex with anyone…they were sports,news,political and entertainment..but I guess the sex stories stood out..

      I enjoyed writing here, maybe I will again some day…but you’ll all hear from me here and other places I’m sure. Thank you all for reading my stuff, and I even don’t hate the haters…in many ways they made it even more exciting.

    • Craig Glaysure says:

      Once again I give you Harley, always right, 100% of the time, always, without fail, right. Always. Im so glad you new I would be back, Harvey. You’re brilliant, you saw through the whole thing. You are the only one to predict my return. I too am glad Hearne couldnt take the pressure as well, also. I wish I had your insight, your powers of delusion or deduction, I dont remember which word fits here but I want to use one of them because it sounds good.

      Thanks for always have the inside, always leading us to the clear vision, the facts, the straight scoop. Where would the truth be without you to share it, without you to tell us what it is? We are just harley sheeple waiting for your lead.

      We will put this in the great list of Harly fails! The list where harly never ever got it right but discounts those times to maintain his always right 100% of the time always right always status.

      God youre an idiot. And a giant douche.

  2. harley says:

    but glaze..i have to disagree.
    The economy was near total collapse in january of 09.
    it was on life support. The stimulus and the bailouts are what saved
    the nation. Obamamade a decision to save the auto industry which has
    been a crowning achievement.
    The economy is turning around. Unemployment is coming down and
    as i will outline in my new financial paper it could get down to about
    6.8% by the end of the year…maybe down further.
    Housing market is starting to explode again. California homes are now
    seeing multiple bidders on the same home. It’s not whatit was but even
    my home is about to get back to pre 2008 level at 650-700k.
    We took a major shock that boomers hadn’t seen in thier lifetime.
    You have some figues about rates that are incorrect and which if
    we reached those would essentially bankrupt the economy as it
    now is. No big deal…
    As far as banks go i can tell you that banks are now begging for
    certain types of loan…with approvals going to 450 scores on some
    loans that have 7% interest. Big banks can get the money cheap so
    even if they loan it out at 7-10% they are doing very very well.
    The world changed as I have always said. It changed dramatically.
    I believe we are headed to a major boom economy based on a
    number of factors…but here’s what will kill that…a severe labor
    shortage that is going to affect everyone of us.
    Just yesterday i heard something i’ve never heard…a large
    local plumber advertising for plumbing/hvac employees on the
    radio. This is a sigh of things to come. This was affect the nation
    greatly.
    It’s still a long road back…austerity is not the answer as we’ve seen
    in europe…and the key will be creating job…jobs…jobs as quickly
    as possible and getting the nation working again.

    • Craig Glaysure says:

      Just stop. You look worse by the second.

    • Gassedup says:

      “the economy is turning around”

      You on the obama payroll?

      • StillAtMyMoms says:

        Harley, you’re delusional. I don’t need fudged numbers from a mainstream outlet to regain confidence in our (now) globalized economy. The 2008 crash marked the start of a transitional period where they will continue to lift embargos and free trade in order to homogenize us all into a gigantic indentured servant class (slaves). The subprime crash and other institutional failure just incited the corporate apparatus, who ultimately has an iron grip on us all, to restructure accordingly. “Too big to fail” is the biggest socialistic slogan I have ever heard. Screw socialism, this is a bona fide fascist state under the guise of “democracy” they relentlessly promote. And don’t you dare consider me as some conspiratorial, Alex Jones-listening nut, either. I see the dismal economy personally, whether through merely seeking a better job, less pay, the rising cost of living, etc. Of course nobody takes their own experiences into account and relies on some pundit to formulate their views. Mindless drones we all are.

        • harley says:

          still at moms.
          sorry to hear that things are tough for you.
          I know that many people felts the hardships of the
          recent financial collapse.
          Hopefully you can find that better job…improve your
          stock in life…and get back on a good track financially.
          Truth is that the economy is improving and the
          stats prove it.
          If you need some help in career counseling or some
          financial advice I’m free and available to help in
          any way i can.
          If you’re looking for a new career path i have some
          friends that could direct you there and possibly
          get you started on a new job.
          take care…you can contact me at law4life1000@yahoo.com
          …. thanks
          I would suggest something. Maybe try to adjust
          your attitude a bit. You seem really down and
          that can affect everything you do. Find something
          you enjoy doing and do it…it will make life somuch
          more exciting.

    • paulwilsonkc says:

      Harley, I’d like to add some independent numbers to this faux post on a faux story by a former writer who didnt even post it and an intelligent debate just on the facts.

      It’s true Obama entered office in the midst of a deep recession. Its true Bush spending did us no favors and helped put us there, it gave us wars we had no business being in and run away spending like a drunk sailor with no disrepect to drunk sailors who NEVER did it as well as he did! It was horrific by anyone’s standards, Republicans or Dems. But, according to the National Bureau of Economic Research, the true and honest recession was coming to a close 3Q 2009

      I don’t know many areas where the stimulus could be considered a success and in most it was incredibly embarrassing. To start, the Obama administration stumbled even pulling the trigger to get the funds into the economy. Per all available reports I was ever able to find, as of the end of June 2009, only about 7% of the stimulus had been spent.

      If you want to look at the infrastructure piece that went to State and local governments, the part that was so touted as shovel ready infrastructure jobs, those monies were mainly used to reduce borrowing and thus did not result in an increase in purchases. Nothing new was gained there.

      And one of the worst pieces of the program, except for job creation; the Broadband Internet Provision Plan: Jeffrey Eisenach and Kevin Caves of Navigant Economics, took a hard look at that one! How much did it cost per unserved household to get them broadband access? $349,234!!! It was even worse, by a factor of 100’s in Montana! Up to 7 different firms already operated there; all broadband providers, including wireless. Only 1.5 percent of all households in the region had no wireless access at all. The Montana business case comes to about $7 million for each additional household served. Now, remember, I said that is true of you take the Montana only results divideed by the Montana customers only.

      Employment? A cross state analysis shows that one additional job was created for each $170,000 in stimulus spending. “Time series analysis” at the State level shows a smaller response with a per job cost of about $400,000! These results utilize Keynesian multipliers between 0.5 and 1.0 I’m willing though to give Obama the advantage and use his own argument that the $800 billion package created 3 million jobs! That works out to $266,000 per job. A success?

      In the 2Q of 2012, CBO estimated between 200,000 to 1.2 million people had jobs (that’s a REALLY wide range!!) they otherwise would not have had. Assuming that the number was 1.2 million, that means each of those jobs cost taxpayers $692,500. I would rather have the $700K and invest the windfall than have the job at that rate!

      Moving through ’13 and ’14 the maximum number of jobs sustained by stimulus will decline rapidly. I’m guessing the first quarter of 2013 will see a sustained level of no more than 600,000 jobs. More likely closer to 200,000. If it is 600,000, for the benefit of the math, each of those jobs will have cost taxpayers $1,385,000. By the fourth quarter of 2013, the maximum number of jobs it sustains will be 400,000 at a cost to taxpayers of $2,077,500 per job.

      And as for car makers too big to fail, bankruptcy has worked for a lot of big firms and they come out leaner and meaner than ever! GM could have done that! And, the Italians were going to by Chrysler no matter what, so they didn’t need the assistance.

      I’m lost on how is was such a success.

      • Orphan of the Road says:

        You are a fraud wilson. You just used the same words as harley.

        Sure, you put them in a different order, used proper spelling and punctuation but that’s the only difference.

        The Joos and Eye-talians are never gonna let your comments on their savior, harley.

        Give up.

      • Orphan of the Road says:

        You are a fraud wilson. You just used the same words as harley.

        Sure, you put them in a different order, used proper spelling and punctuation but that’s the only difference.

        The Joos and Eye-talians are never gonna let your comments on their savior, harley, stand without a beatdown.

        Give up.

        • Orphan of the Road says:

          Youse maid me so nerfous I doble posted.

          • paulwilsonkc says:

            I used the EXACT same words as Harley with the exception that none of them were the same.

            He and I have and arrive at the exact same conlusion, except where we differ, which is only from the start to the end.

            And I LOVE IIIIItalians! I could live on Pasta and red wine! But I also love the Jooos, only because I need a banking relationship and watch the occasional movie; and we all know they own those two markets!

        • paulwilsonkc says:

          HAHAHAHAHAHA!!!! Love me some Orphan!
          Youse maid me so nerfous I doble posted.

      • harley says:

        i could refute every argument you have on here wilson but
        i’m short of time.
        The stimulus worked. Point blank.
        You mention broadband access…every state is trying to
        expand that…many states do it on their own..including
        kansas…which pays at and t 86 million dollars a year from
        phone bill taxes to cover rural area communications.
        the stimulus worked and the numbers you bring to the
        table are pretty far fetched. Most of the stimulus money
        went to state governments to pay for nedded services like
        fireman/police etc…eseential services that would have
        been cut off without the stimulus.
        Your part about the auto bailout is just worn out b.s.
        sorry…there was no private money sources for the
        auto manufacturers. To try to deny that is purely
        wrong. Had the government let those companies go into
        bk those companies wouldn’t have sufferd as much as all
        the 2 million people employed who supplied everything from
        tires to brakes and sterring wheels to the industry. Tjhey would
        have collapsed.
        Those stats are worn out andold. They’ve been disproven
        …and no matter whatthe opponents of the plan say
        the stimulus and the bailouts saved this nations entire
        financial structure. To not do those would have been
        disastrous.
        You should also know that there are 4-5 million unfilled
        jobs now. Regarldess of the stats you present…there is
        a serious shortage of skilled workers…
        the stimulus was needed since the consumers weren’t spending..
        the business world wasn’t spending…so the government had
        no option but to stimulate the economy in any way possible
        to create jobs. those 1.2 million jobs were so huge during the
        financial collapse..because imagin the costs if they were never
        created.
        and wilson…the debt that you and your people are so
        worried about…75% was created prior to the collapsed..
        they were 2 unfunded wars and bush tax cuts…thats
        what killed the economy along with the fraud that
        was so rampant in the banks.
        truth is wilson..had there been no bailout or stimulus
        you probalby would be unemployeed right now.
        pretty simple forumula…and if you read the recent
        articles by even the leading right wing economists..they
        too now say the stimulus was a major factor in the
        economy not reaching even lower levels.
        thanks.

        • harley says:

          wilson…you’re typical of many right wing politicos
          who hate the stimulus and the tax breaks
          and all the stuff government does…until they
          profit from it.
          how aboutthe governors who hated the stimulus
          but got millions/billions from it sent to them from
          washington as part of the stimulus package.
          even you profited with amc getting those millions
          in tax breaks and they moved to town center.
          had kansas state not given them the tax breaks worth
          millions and millions they probaby would not have
          moved there….
          so everyone hates the programs til they get a piece
          of the action.
          thats the way of business.
          i know one biz owner who hated obama..hated the
          bailouts and stimulus…but he got 2 million dollars
          line of credit from sba as part of the stimulus
          program…oh yeah…he took advnatge of the stimulus..
          even his son got 1.2 million line of credit…
          so big government isn’t always so bad…especially
          if you make money offi it!

          • paulwilsonkc says:

            By the way… Im a long way from right wing these days. That would have fit a decade ago or so, but no more….

    • expat says:

      Harley how do you feel that people are finally noticing that Obama’s administration aided the criminals on Wall Street? (I’ve been complaining about this for years.)

      http://www.guardian.co.uk/commentisfree/2013/jan/23/untouchables-wall-street-prosecutions-obama

      • harley says:

        yes…i agree…i understand.
        but it’s politics….and wall street now has the nation by
        the balls.
        with their superspeed transactions…theirvability to
        manipulate the economy…their bets on everything in the
        financialworld…they can turn on anyone at the drop of
        a hat.
        unforutnately obama is faced with a dilemma. Go after
        the wall street bankster and risk reprisals…or give them
        the break (they don’t deserve them) and focus on them
        getting back into the economy.
        I saw it long before anyone else did…the fraud was rampant…
        but it’s time to move on and as always…
        its easier to steal money with a pen than with a gun.
        its a bad siutation but we need wall street to help get
        america back on track again…
        he can fight them…or join them and work with them.
        not good…but the influence of money in government
        has gotten out of hand.
        i agree with you…thats just the new normal.

        • expat says:

          You’re almost right but not quite there. The fact that nobody has been charged helps persist a lack of trust in the financial system, hindering the economy’s ability to function properly. What’s needed is to restore trust by restoring accountability, transparency and fairness. Obama could have got a much better bang for his buck by simply prosecuting Wall Street and bringing back Glass-Steagall than the vast amount he’s wasted on failed stimulus. The “economic turnaround” being lauded is nice but doesn’t have any volume behind it – it won’t last. I’m pretty certain the only reason the markets are up at all are because of fading affect bias coupled with the need for return on capital.

          Unfortunately Obama doesn’t have the experience/depth to call out the Wall Street cronies in his cabinet and force them to make real positive changes. That’s been my problem with him since day one – he’s simply not qualified to lead these people. Don’t get me wrong I’m not saying Romney would have been better but at the moment US economic policy is coasting, at the whim of people who can’t be trusted to guard it. We’re going to have four more years muddling through unless for some reason Obama wakes up and fires a good chunk of his economic advisory and makes some drastic (but simple) changes.

          • harley says:

            expat…you’re right.
            but obama took over after the damage was
            done by wallstreet.
            He had to clean up the mess..the collapse
            fell into his lap…and as
            ax his aide said when they walked into their
            first meeting on the economy..
            CAN WE HAVE A RECOUNT???
            obama can fight them..jail them…but he’s
            walking a fine line.
            we all know they’re crooks…saw it on pbs
            the other night with countrywide and what
            mozilla did there.
            I saw it first hand as I said. These lenders
            were buying loans that were absoultey
            worhtless.
            so obama hasa choice…take down the
            bankers and wall street guys.
            Send the financial world into a tail spin.
            take the top bankers and put them in jail
            which might freeze the banks and hurt them.
            yes the bankers belong in prison..everyone
            knows that. But go after them and those
            too big to fail banks freeze and then we’re
            all screwed.
            obama i think has it right. Putting bankers
            in jail right now won’t create any jobs or
            get the economy booming.
            he can get headlines and put them in the
            perp walk or just back off and work to
            get the banks back in line..lending again..
            and of course…everyone knows the
            money the bankers wield..the power they
            now have…and the potential damage by
            shaking their tree.
            i agree…a kid robbing a store of $100 gets
            6 years in prison…these guys get off.
            as far as tje economy coasting…i somewhat
            disagree…but we need the banks who control
            everything right now on boards.
            i look it like this..
            for average americans we know what happened.
            he could go after them but right now the
            priority is getting the economy booming
            again.
            tough decision..i see your point…
            thanks.

  3. TOby says:

    “The future is behind you people”

    That just says so much. Goodbye and good luck.

    Tobes

  4. Chico Hemingway says:

    Mis ojos! Mis ojos!

  5. boogeyman says:

    THIS is what Hearne had to ‘edit’. Craig writes like he talks, he never went to journalism school and the ‘5 W’s and H’ school of the lead in is lost on him…but he isn’t reporting as much as opining and for an opinion writer, he’s not half bad. Hell, he puts his stuff up in public where the Great Herd can take potshots at it and doesn’t flinch. That’s more balls than most people have. Especially considering that he isn’t some faceless douchetard, people know EXACTLY who he is.

    Sorry, Hearne, you bowed to the haters on this one and, I think, did yourself and KCC a disservice in the process.

    • admin says:

      Wrongo boogeyman,

      I didn’t bow to the haters, I bowed to myself and my desire to retain some semblance of sanity. I don’t have the time or energy to spend two full workdays or more cleaning up and fact checking Craig.

      I did it for two years and that was plenty long enough.

      I didn’t have the time or energy to write my own share of columns and better edit other writers on the site. I’m not worried about the “haters,” I’m worried about my sanity and living to tell the story.

      I’m ready for something lighter, something more fun. Say like cleaning the Augean Stables.

      • harley says:

        i understand hearnes point.
        he’s right on this one. I hate to see glaze go.
        but hearnes got to do what he feels is best.
        wedon’t realize this but to hearne this is a business.
        he’s got to make money (he doesn’t need to but its
        always nice to be profitable)…
        and its a biz decision he made..
        move on…the world is still beautiful…and hopefully
        hearne takes this to another level…
        we just won’t have glaze to kick around anymore..
        but HARLEY STILL RIDES ON!!!!!!!!!!!!!!
        ICAN ONLY IMAGINE THE INTENSE HEAT THAT
        WILL BE DIRECTED TO HARLEY NOW THAT GLAZE
        LEFT ME TO THE KCC COMMENTERS…
        OMG…

      • chuck says:

        “Augean Stables”. (Snicker)

  6. the dude says:

    The people in ‘the know’ realize there is a second tank that will be coming shortly because bankers and legislators did not learn any lessons from the last bust. The bailout went to bolster even bigger bonuses on wall street and they took that as a green light to continue to rape and pillage and do as they please. Notice there still has not been any major board members or CEOs that have been convicted or even indicted for fraud.

    And that’s what this last bust was, a big fraud hung on the necks of America’s taxpayers with nary a conviction or indictment.

  7. PucKChaser says:

    I work for one of the biggest financial services companies in the US.

    I can say that this statement is 100% incorrect.

    “Baby Boomers control over 70% of the US economy. They have all the money. For the most part, SAVED UP. With no interest from CD’s or Savings, no safe investments, and deep fear of the stock market, they hold their money tight to their vest. ”

    Baby Boomers behavior have, in no way, reflected a deep fear of the state market.

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