Federal Reserve: More Than 4 Out Of 10 Americans Do Not Even Have Enough Money To Cover An Unexpected $400 Expense
by Michael Snyder
TheEconomicCollapseBlog.com
5/23.2018
The U.S. economy is not doing nearly as well as the mainstream media would have you believe. A few days ago I wrote about a new study that discovered that nearly 51 million U.S. households “can’t afford basics like rent and food”, and just yesterday I discussed the fact that we are on pace for the worst year for retail store closings ever. Now we have just gotten new numbers from the Federal Reserve which are absolutely staggering. According to the Fed’s latest study, more than 4 out of every 10 Americans do not even have enough money to cover an unexpected $400 expense without borrowing the funds or selling something. In essence, nearly half the country has no significant financial cushion whatsoever. So what are all of those people going to do when the next economic crisis hits?
Sadly, living on the edge has become a daily reality for tens of millions of Americans. The following is from a CNN article about the Fed’s new report…
Can you cover an unexpected $400 expense?
Four in ten Americans can’t, according to a new report from the Federal Reserve Board. Those who don’t have the cash on hand say they’d have to cover it by borrowing or selling something.
According to the report, the exact figure is 41 percent.
41 percent of all U.S. adults cannot cover an unexpected $400 expense.
Let that number sink in for a moment.
I am sorry – if you can’t come up with $400 right now without borrowing it, you are broke. And as of right now that is the financial condition of 41 percent of all Americans.
Amazingly, the Federal Reserve is actually trying to spin this report as good news…
“This year’s survey finds that rising levels of employment are translating into improved financial conditions for many but not all Americans,” Fed Governor Lael Brainard said.
Really?
The Rest…HERE
