Ownership & Assets

“I work to live.”

So goes the beginning of a quote by a mid-20s woman who was interviewed for a recent Washington Post piece on bankruptcy.

The presentation is available below in Microsoft Powerpoint format.

The U.S. economy has been gripped by a relentless housing crisis for almost two years. A key driver in this crisis has been the many subprime mortgages that involved high rates and fees -- often requiring no down payments -- that were made in the past several years. California is ground zero in the subprime crisis and the resultant spillover effects -- foreclosures, bankruptcies, decreasing property values to name a few. Recognizing that relying on the market alone is unlikely to bring an end to the crisis, the U.S.

...The New America Foundation's idea is embodied in AB2940, by Assemblyman Kevin De Leon, D-Los Angeles. It would establish the California Employee Savings Program, to be administered by the California Public Employees Retirement System, the same entity that invests the pension contributions of state and local government workers...LINK

In the Feb. 20 issue of Paybefore Update, my colleague, Melissa Koide, discussed a proposal to use prepaid cards to deliver tax refunds through a unique alliance of government and industry, Viewpoints: A Convergence of Opportunities: Delivering Prepaid Accounts at Tax Time (February 2008).

Every day, six million Californians, or roughly 43 percent of workers in the state, go to work for an employer that does not provide any type of retirement pension or savings plan. This lack of retirement savings opportunities puts California working families at risk. On Wednesday, May 21, Mark Iwry of the Brookings Institution presented on the current retirement savings crisis in America -- its causes and the continuing effect it will have on the financial security of working families as well as the state and national economy. Mr.

As the percentage of workers covered by traditional employer pension plans has plummeted in recent years, saving has become the only path to secure retirement income beyond social security. Although a significant proportion of employers now offer their workers a tax advantaged retirement savings product like the 401(k), tens of millions of workers nationwide simply do not have access to an employer sponsored retirement savings plan.

On Wednesday, May 14, 2008, Sen. Charles E. Schumer (D-NY) convened a Joint Economic Committee (JEC) hearing to examine the current systemic risk in the U.S. financial system and the possible government and private sector solutions to protect the economy against those ongoing risks.

"By some estimates, payday loans topped $28 billion last year, and have doubled every year for the past five years. These numbers are really frightening."

-Sheila Bair, Chairman, Federal Deposit Insurance Corporation, April 19, 2007

Join the New America Foundation/Asset Building Program and the Institute for American Values for a timely conference on thrift and its increasingly important role in reducing and managing personal and societal debt. Speakers will discuss changing the debt culture, solutions to payday lending, and lessons from abroad.

Full article

A coalition of consumer advocates, public policy groups and academics wants to attack our country's dependence on debt by creating a national campaign much like the one used to curb smoking. . .