First Federal Response?

[don]

''Right now many senior citizens are feeling depressed because things seem out of control. They feel like they are in a boat being whipped around by rough seas,'' said Sung Won Sohn, an economics professor at the Smith School of Business at California State University. ''Their purchasing power has been going down because of higher prices for food and energy and a lot of other things while their savings have taken a hit because of what is happening in the markets.''

"Social Security benefits for 50 million people will go up 5.8 percent next year, the largest increase in more than a quarter century."

With Shadowstats and iTulip we all know the Fed is free to modulate the cost of living index more at less at will. Is this the first citing of State-subsidized retirement/wage/salary increases?

http://www.nytimes.com/aponline/wash...hp&oref=slogin

[c1ue]

Re: First Federal Response?

The problem is that a 5.8% increase doesn't do squat.

I am in the process of helping an 87 year old lady on Social Security.

She doesn't have money to be a paying customer, but she's in a tight spot so I'm pitching in.

Basically she's $300 in the hole for the utility bill because of the last 18 months of energy price increases.

Thus despite her having a ridiculously cheap ($300 for 2 BD 2 BA) rent controlled apartment in the best part of SF, her $800 monthly stipend was not stretching enough to cover her SF winter $180 - $260 monthly utility bills. And now she's gotten a 48 hour shutoff notice.

So another 6% increase in her social security isn't going to help much. Now think about those seniors in places with snow.

[don]

Re: First Federal Response?

The problem is that a 5.8% increase doesn't do squat.

I am in the process of helping an 87 year old lady on Social Security.

She doesn't have money to be a paying customer, but she's in a tight spot so I'm pitching in.

Basically she's $300 in the hole for the utility bill because of the last 18 months of energy price increases.

Thus despite her having a ridiculously cheap ($300 for 2 BD 2 BA) rent controlled apartment in the best part of SF, her $800 monthly stipend was not stretching enough to cover her SF winter $180 - $260 monthly utility bills. And now she's gotten a 48 hour shutoff notice.

So another 6% increase in her social security isn't going to help much. Now think about those seniors in places with snow.

Agree with everything you said. The point was the Fed decided NOW to make an 'historical' jump in SS COL. Pathetic, yes.:mad: A harbinger? Perhaps.
(This was 'covered' on the local news last night in a story that included both the $65 a month average American increase and the explosion of health care costs, from $6k to $12k a year in the last decade. The senior moment was provided by a guy, 75 years old, that said his quarterly statement showed a loss of $30k. Of course this being MNM coverage, no dots were connected. Everything simply stood alone.)