The reason for increasing reserves

I have seen this happen in my condo association. It is what is necessary for everyone including the federal reserve to do.

Two condo associations save money for replacement of roof after 15 years. My building chooses to save 100% of the cost of the previous roof replacement plus 15% for inflation.

The other condo chooses to save 15% of the previous roof replacement and assess unit owners for the balance. They want to have more money in their bank.

When it came time to replace the roofs, who's roof was completed? The unit owners in my condo paid for the roof, had some extra funds left over because we bargained with the installer and got rebates for installing a energy efficient roof. Our monthly payments went down because we are saving for a 10 year project over 15 years.

The other condo did not get the money they needed from the assessment. They paid 5 times the amount needed for the roof in legal fees to collect the necessary monies. They purchased tar roofs, because that is what they always did. They are in legal fights with the unit owners, other condos, the installer, and suppliers; simply because they did not have the funds saved. They still have not completed their roof.

Oh yeah, our unit owners had their electric bills reduced by 50% because of the energy efficient roof.

Meltzer the man who Margret Brennen had on her show today is wrong. Savings is what we the people need to do. We need to strengthen the dollar by savings.

If you the people wish to have the lifestyle we have enjoyed, then you must save the monies required for funding the replacement and upgrading of infrastructure. There is no way around this.