Happy And Succeeding In The Future Of Work
Chinese People Are Revolting, Americans Are Dipping Into Their Saving Because Of Inflation And Crypto Toxicity
The week is not starting off well for the stock market. One of the reasons for the Dow Jones Index dropping by 459 points is due to concerns over China.
The Chinese population is fed up with being quarantined under the regime’s zero-Covid policy. Some families that were locked up suffered an untimely fate as their apartments caught fire. This horrendous event stoked the growing anger of people, who took to the streets in protest.
It’s Not So Great In The U.S. Either
Apple stock dropped Monday due to the protests at the world's biggest iPhone factory in China. Reuters reported last week that the Foxconn plant could see a further drop in phone shipments as thousands of employees quit over their discontent with working conditions.
We can’t stop inflation. The consumer price index was 7.7% in October. Inflation is insidious, as it eats away at your hard-earned money.
It's not only the low-wage workers who are feeling the pain. The wealthy are hurting too. About 60% of Americans are living paycheck to paycheck, according to a recent report by PYMNTS and the LendingClub.
Professionals earning six-figure incomes are feeling the financial effects of inflation. Roughly 45% of Americans earning more than $100k are living paycheck to paycheck as well.
Additionally, the report finds that millions of Americans don’t possess emergency funds to get through tough times and make ends meet.
Purchasing Power Is Decreasing And Credit Card Debt Growing
Wage growth has not kept up with 40-year, record-high inflation rates, according to an October report from the Federal Reserve Bank of Dallas.
The median decline in real wages after taxes and factoring in inflation takes a bite of 8.5% out of your paycheck. To add insult to injury, monthly bills, gas and food costs are rising without any end in sight.
To stay afloat, people are maxing out their credit cards. The balance of credit cards climbed by nearly $50 billion during the second quarter of the year, the Federal Reserve Bank of New York reported. If you haven’t noticed, the interest rates on your cards are crazy high.
The Federal Reserve Bank of St. Louis indicated that the personal savings rate—the rate refers to personal savings as the percentage of income left over after you pay taxes and spend money—plunged to 3.5% in August. Last year at that time, it was nearly 10%.
Things are bad when you start dipping into your life insurance policy. In a New York Life’s (insurance company) Wealth Watch Survey, respondents said they had to take money out of their savings to cover everyday expenses. Similarly, Americans are also dipping into their retirement money too. Around 20% of Americans took money out of their 401k and IRA plans, according to a survey by NY Sports Day.
It's alarming that Americans are draining their cash reserves to keep up with inflation and rising costs, right before a predicted recession in 2023.
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Crypto Corruption And Crashes
A recent report from Coindesk said that more than 50% of Bitcoin addresses are now in the red, losing money. The Blockchain analytics firm says that 24.6 million of the total 47.9 million addresses are currently valued below what investors paid for their initial investment costs. About 45% of addresses are said to have unrealized gains, while the rest are approximately breaking even on their investments.
BlockFi Bust
U.S. cryptocurrency lender BlockFi got caught up in the FTX fiasco. On Monday, it filed for Chapter 11 bankruptcy protection, along with eight affiliates in a New Jersey court.
New Jersey-based BlockFi said it owes money to more than 100,000 creditors. It listed crypto exchange FTX as its second-largest creditor, with $275 million owed on a loan extended earlier this year.
BlockFi previously paused withdrawals from its platform and blamed, in part, FTX and Sam Bankman-Fried. The filings came after FTX filed for U.S. bankruptcy protection and its founder SBF resigned as chief executive. BlockFi is not alone. There has been a long list of crypto collapses, including FTX, Voyager and Celsius.
In Other News
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JPMorgan, Other Banks in Talks to Reimburse Scammed Zelle Customers
Adidas Employees Raised Concerns About Ye’s Conduct For Years, Report Says
This Furniture Company Laid Off 2,700 Workers Via Text, Days Before Thanksgiving
Nearly Half Of Worldwide Employees Would Not Recommend Their Company Or Profession To Their Children
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