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Survey: 40 Percent Of Americans Have $500 Or Less In Savings
CBS Local ^ | October 19, 2012 | John Ostapkovich

Posted on 10/19/2012 12:31:42 PM PDT by rightwingintelligentsia

PHILADELPHIA (CBS) — A survey of about 1,100 Americans finds that more than 4-in-10 respondents admit they don’t have more than $500 in readily accessible savings.

The survey is a kind of departure for CreditDonkey.com, a website that compares credit card deals. Not respondents all were poor. Some had big houses, big mortgages or 401(k)s, but still no more than five Benjamins to rub together right now.

Jill Michal, president and CEO of the United Way of Greater Philadelphia and Southern New Jersey, reacts to the lack of liquid assets.

“It doesn’t shock me, but it does scare me. You know, we often say that the reason so many people fall off the edge in a tough economy is that they’re standing way too close to it, and I think this is a perfect demonstration of that.”

Michal says there’s a lack of training in personal finances.

(Excerpt) Read more at philadelphia.cbslocal.com ...


TOPICS: Business/Economy
KEYWORDS: preparedness; savings
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1 posted on 10/19/2012 12:31:46 PM PDT by rightwingintelligentsia
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To: rightwingintelligentsia

During the next Obama term, those with $500 in savings will be the “new rich.”


2 posted on 10/19/2012 12:35:20 PM PDT by Huskrrrr
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To: rightwingintelligentsia

40% have less than $500 in savings? I find that very hard to believe, just like the 1 in 5 people going hungry statistic.


3 posted on 10/19/2012 12:38:27 PM PDT by Brooklyn Attitude (We won't stand for biased umps fixing a ball game but we allow a biased media to fix elections.)
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To: rightwingintelligentsia

Idiots.


4 posted on 10/19/2012 12:39:11 PM PDT by Uncle Slayton
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To: rightwingintelligentsia
Wow.

My checking account alone has a $1,000 buffer in it. I have another $10,000 in a savings account for emergencies, like failing appliances.

It wasn't hard to build up that kind of cushion. I just spent less than I took home in my paycheck, for my entire working career.

5 posted on 10/19/2012 12:39:43 PM PDT by justlurking (The only remedy for a bad guy with a gun is a good WOMAN (Sgt. Kimberly Munley) with a gun)
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To: Huskrrrr
During the next Obama term, those with $500 in savings will be the “new rich.”

That's a terrifying thought...

6 posted on 10/19/2012 12:40:35 PM PDT by Conscience of a Conservative
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To: rightwingintelligentsia; Huskrrrr; Brooklyn Attitude; Uncle Slayton

This poll is non-cents.


7 posted on 10/19/2012 12:40:53 PM PDT by sam_paine (X .................................)
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To: Huskrrrr
During the next Obama term, those with $500 in savings will be the “new rich.”

... and targets for an 0bama/Biden tax increase.

8 posted on 10/19/2012 12:41:57 PM PDT by The Sons of Liberty ("Get that evil, foreign, muslim, usurping, gay commie bastard out of MY White House!" FUBO!)
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To: Brooklyn Attitude

I’m rather skeptical myself.

But maybe if they only polled Obama voters, it might be accurate.


9 posted on 10/19/2012 12:41:57 PM PDT by rightwingintelligentsia (Be careful of believing something just because you want it to be true.)
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To: rightwingintelligentsia

But they have at least that much in “balance available” on their credit cards. Isn’t that the same thing?


10 posted on 10/19/2012 12:44:08 PM PDT by sphinx
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To: rightwingintelligentsia

Next question should be...how many Mocha Grande Frappichinos did they buy last year?


11 posted on 10/19/2012 12:45:00 PM PDT by riri (Plannedopolis-look it up. It's how the elites plan for US to live.)
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To: justlurking

The last 4 years cost my family our savings. Kept dipping into it to make up for 28 hour work weeks.

It happens.


12 posted on 10/19/2012 12:47:34 PM PDT by securityman
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To: rightwingintelligentsia

This is a number that I actually can believe. While many people truly do live paycheck to paycheck, the freeloader segment is so permanently irresponsible, that if they found $500 on their doorstep, it would never occur to them to set it aside for a rainy day. Their perception is that they “need” and “deserve” to have the latest cell phone, a bigger flat screen television, new rims for the about to be reposessed car in their driveway, or just a damn good partying night out since waiting on the next handout is damn stressful!


13 posted on 10/19/2012 12:48:01 PM PDT by festusbanjo (Romney has run a business, a state, and an Olympics. Obama has never run anything but his mouth.)
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To: justlurking
Obama printing and borrowing trillions in $ will ensure that your savings and everyone’s become worth 0. Gas and food prices already rising as the dollar will be worthless.

6 trillion in new obama debt

14 posted on 10/19/2012 12:48:45 PM PDT by rurgan (Sunset all laws at 4 years.China is destroying U.S. ability to manufacture,makes everything)
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To: justlurking
Unemployed people do not get a paycheck. They live off their savings. After four years of the O’Bumbler nightmare having $500 would be allot for many people.
15 posted on 10/19/2012 12:50:44 PM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: rurgan

Most of mine is tied up in precious metals.....silver....nickle.....copper.

It`s in that big jar by the fireplace.


16 posted on 10/19/2012 12:51:12 PM PDT by Einherjar ( Asking only workman's wages I come looking for a job But I get no offers...)
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To: Conscience of a Conservative

Look on the bright side, now that we’ll be rich, maybe we can date supermodels :)


17 posted on 10/19/2012 12:51:52 PM PDT by Boogieman
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To: rightwingintelligentsia

Why worry about savings?

SNAP, Welfare, Medicaid, Cell Phones all keep coming. And Ben Bernanke keeps printing the money for that. No worries!


18 posted on 10/19/2012 12:53:48 PM PDT by PGR88
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To: rightwingintelligentsia
Not respondents all were poor. Some had big houses, big mortgages or 401(k)s, but still no more than five Benjamins to rub together right now.


It is not how much money you make that is important, it is how much you spend. It is always a good idea to spend less then you bring home.

This is why some lottery winners, as well as major sports stars allow millions to slip through their fingers ending up broke.

19 posted on 10/19/2012 12:53:57 PM PDT by CIB-173RDABN (California does not have a money problem, it has a spending problem.)
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To: Einherjar

Bury some of it somewhere before Obama’s sons break in to steal it.

I live with gun by side(especially election night)


20 posted on 10/19/2012 12:55:22 PM PDT by rurgan (Sunset all laws at 4 years.China is destroying U.S. ability to manufacture,makes everything)
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To: rightwingintelligentsia
Not that broke, but very close.

A series of devastating medical bills for my daughter's premature birth wiped out our savings years ago and left us with a mountain of debt.

Toss in another miscarriage, another high-risk pregnancy, a battle with cancer, two knee surgeries for my husband, and then a year of having to replace every appliance in the house (at least they had the courtesy to fail in order, one a month - including a $10K HVAC in the dead of winter), yeah...the SHTF over here.

What we didn't do: shirk our duty, not pay our bills 100%, look for handouts, go on government plans, or make excuses.

What we did do: give to our church, donate to charity, buy consignment, shop at Good Will, not take vacations, build our own furniture/deck/patio, stretch every dollar, live with what we had, cut our own hair, fix our own roof/cars/you name it.

Still have a fantastic credit rating, $180K in retirement accounts, a roof over our head, 3 healthy kids, and two gainfully employed individuals.

So no, not everyone hanging on is an Obama voter. Sometimes when it rains, it POURS. For my family, it's been pouring for a DECADE.

21 posted on 10/19/2012 12:58:44 PM PDT by TheWriterTX (Riding the Long-Wave Economic Contraction, Baby!)
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To: rightwingintelligentsia

In the erarly 1900’s there wasn’t any financial training either for most folk. I think people in those days were pretty good at saving money.


22 posted on 10/19/2012 1:02:37 PM PDT by RexBeach (Mr. Obama Loves To Spend My $$$$$$$$$$$$)
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To: festusbanjo

Being related to the freeloader set, I can tell you that one reason they don’t keep money around is because it attracts other freeloaders. If you have money, you need to help people who don’t have money because people helped you when you didn’t have money.

They also have no interest in reigning in their passions.


23 posted on 10/19/2012 1:02:58 PM PDT by AppyPappy (If you really want to annoy someone, point out something obvious that they are trying hard to ignore)
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To: justlurking
My checking account alone has a $1,000 buffer in it. I have another $10,000 in a savings account for emergencies, like failing appliances.

My family has weathered this recession/depression pretty well, but we were very hard up in the late seventies. I can remember one week after buying groceries and paying the bills where we had 18 cents to spare. We pretty much ate peanut butter, hot dogs, and eggs for months after reaching that 18 cent balance just to try to give ourselves some cushion. But it was tough. I feel for a lot of these folks - of course some of them are young and have parents who might bail them out if they got in a jam. But my guess is most of them are just regular folks living paycheck to paycheck and they'll have to use a credit card if the hot water heater blows or the car breaks down.

The good thing is once they've lived through sparse living and their income starts growing, they'll save some money before they inflate their lifestyle. I know we did and what a blessing it's been.

24 posted on 10/19/2012 1:03:29 PM PDT by old and tired
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To: Einherjar
It`s in that big jar by the fireplace.

The einher jar?

25 posted on 10/19/2012 1:08:49 PM PDT by Roccus
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To: rightwingintelligentsia

Doesn’t a retirement account count as savings? It does in my house (although we have non-retirement savings as well).


26 posted on 10/19/2012 1:13:00 PM PDT by con-surf-ative
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To: rightwingintelligentsia

It would be zero if they had to pay for their Obamaphones.


27 posted on 10/19/2012 1:22:13 PM PDT by rfp1234
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To: rightwingintelligentsia

Why keep savings in an account or CD which earns 1% or less interest and can be tied up by external developments like a bank failure, government seizure natural disaster or hyperinflation, at a time when food and fuel are rising at over a 10% retail rate?


28 posted on 10/19/2012 1:22:27 PM PDT by research99
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To: Brooklyn Attitude

40% have less than $500 in savings? I find that very hard to believe, just like the 1 in 5 people going hungry statistic.

<><><><

Um, do we all think that the 47% of whom Romney spoke have 500 bucks in savings?


29 posted on 10/19/2012 1:29:49 PM PDT by dmz
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To: rightwingintelligentsia
I was doing pretty good until my daughter and son in law were both out of work for almost a year. Every time I start to gain some ground something else breaks.

Last month was $100.00 for a hard drive and $300.00 for a septic tank effluent pump.

I'm grateful that we can do most maintenance ourselves, just buying parts is bad enough.

I used to sell the same basic pump for $79.95.

30 posted on 10/19/2012 1:35:20 PM PDT by SWAMPSNIPER (The Second Amendment, a Matter of Fact, Not a Matter of Opinion)
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To: TheWriterTX

Aren’t retirement accounts considered savings?


31 posted on 10/19/2012 1:39:04 PM PDT by luckystarmom
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To: rightwingintelligentsia

OK, I know we have a lot of good folks that are looking for work, and I’m not talking about them, but this number is meaningly without subtracting out people on EBT/welfare etc.

What need does a person on welfare have for savings? Their rainy day is already covered.


32 posted on 10/19/2012 1:45:19 PM PDT by SampleMan (Feral Humans are the refuse of socialism.)
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To: rightwingintelligentsia

If that’s all I had for an emergency fund I’d freak out. You’d be one car repair away from having to tap credit, a job loss away from bankruptcy.


33 posted on 10/19/2012 1:47:25 PM PDT by RegulatorCountry
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To: Boogieman
Look on the bright side, now that we’ll be rich, maybe we can date supermodels :)

If $500 in savings can be defined as "rich," just think of what could be defined as "supermodels" :)

::shudders::

34 posted on 10/19/2012 1:50:30 PM PDT by Conscience of a Conservative
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To: research99
Why keep savings in an account or CD which earns 1% or less interest and can be tied up by external developments like a bank failure, government seizure natural disaster or hyperinflation, at a time when food and fuel are rising at over a 10% retail rate?

What do you recommend as an alternative?

35 posted on 10/19/2012 1:51:17 PM PDT by Ken H
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To: rightwingintelligentsia

If some one ask me on the street, if I have any ready money savings, I’d answer no.

$200 tops, and it’s none of their business. Then tell the guy and camera crew to buzz off.


36 posted on 10/19/2012 1:54:50 PM PDT by Sir Napsalot (Pravda + Useful Idiots = CCCP; JournOList + Useful Idiots = DopeyChangey!)
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To: Sir Napsalot

You don’t know what kind of people you see on Philadelphia streets, that is.


37 posted on 10/19/2012 1:55:55 PM PDT by Sir Napsalot (Pravda + Useful Idiots = CCCP; JournOList + Useful Idiots = DopeyChangey!)
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To: rightwingintelligentsia

Here’s what I don’t get. Through hard work, discipline and God’s grace, we have considerably more than that in savings, so we are in a better place than 40% of folks. Yet, at least 80% of the cars I pass every day are much newer than mine and my wife’s. Wait, maybe there’s a correlation.


38 posted on 10/19/2012 1:57:45 PM PDT by tnlibertarian (Hope isn't a strategy.)
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To: con-surf-ative

My thoughts exactly...if they have retirement funds, then it’s just a cash flow problem. They could access those funds if need be. Same with house if they’re not underwater. If equity is available, then again, cash flow issue, not poverty.


39 posted on 10/19/2012 2:06:35 PM PDT by memyselfandi59
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To: Brooklyn Attitude

40% have less than $500 in savings? I find that very hard to believe, just like the 1 in 5 people going hungry statistic.

 

You found that hard to believe? I ran accross this article last year and DID NOT beleive it.

Basically, more than 1/4 of all Americans COULD NOT get their hands on $2,000 if you gave them a whole month to do it. However, as you can see from the comments... Many FReepers had no problem with that statement.

Nearly Half of Americans Are ‘Financially Fragile’
Wall Street Journal Blogs ^ | May 25, 2011 | Phil Izzo
 

Posted on Wednesday, May 25, 2011 1:46:22 PM by rightwingintelligentsia

Nearly half of Americans say that they definitely or probably couldn’t come up with $2,000 in 30 days, according to new research, raising concerns about the financial fragility of many households.

In a paper published by the National Bureau of Economic Research, Annamaria Lusardi of the George Washington School of Business, Daniel J. Schneider of Princeton University and Peter Tufano of Harvard Business School used data from the 2009 TNS Global Economic Crisis survey to document widespread financial weakness in the U.S. and other countries.

The survey asked a simple question, “If you were to face a $2,000 unexpected expense in the next month, how would you get the funds you need?” In the U.S., 24.9% of respondents reported being certainly able, 25.1% probably able, 22.2% probably unable and 27.9% certainly unable. The $2,000 figure “reflects the order of magnitude of the cost of an unanticipated major car repair, a large copayment on a medical expense, legal expenses, or a home repair,” the authors write. On a more concrete basis, the authors cite $2,000 as the cost of an auto transmission replacement and research that reported low-income families claim to need about $1500 in savings for emergencies.

Financial fragility isn’t limited to low-income groups. “Households with socioeconomic markers of vulnerability (income, wealth, wealth losses, education, women, families with children) are more likely to be financially fragile, and substantially more so,” the authors write. “The more surprising finding is that a material fraction of seemingly ‘middle class’ Americans also judge themselves to be financially fragile, reflecting either a substantially weaker financial position than one would expect, or a very high level of anxiety or pessimism. Both are important in terms of behavior and for public policy.”

(Excerpt) Read more at blogs.wsj.com ...


 

 

 

40 posted on 10/19/2012 2:07:19 PM PDT by Responsibility2nd (NO LIBS. This Means Liberals and (L)libertarians! Same Thing. NO LIBS!!)
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To: blam; Oldeconomybuyer; LucyT

PING!


41 posted on 10/19/2012 2:08:50 PM PDT by Graewoulf ((Traitor John Roberts' Obama"care" violates Sherman Anti-Trust Law, AND the U.S. Constitution.))
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To: justlurking

A few year ago I got tired of being “poor”. I quit spending money frivolously. My wife died 11 years ago and our daughter moved out and married. My income is 35K a year and I am now debt free with 16K in a savings account.


42 posted on 10/19/2012 2:13:49 PM PDT by R. Scott (Humanity i love you because when you're hard up you pawn your Intelligence to buy a drink)
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To: rightwingintelligentsia
Didn't read the whole thing but if this is just adults it's partially an indication of stupidity and an indication of how Osama’s brought this country to its knees.My parents were children of the Depression and taught me (particularly my Dad) to live below your means and always have something socked away.I'm my father's son so in addition to the equity I have in my home (which is paid off) I have liquid assets more than sufficient to meet any emergency.
43 posted on 10/19/2012 2:17:58 PM PDT by Gay State Conservative (Ambassador Stevens Is Dead And The Chevy Volt Is Alive)
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To: rightwingintelligentsia

My brother and I are not rich, just regular guys, but we both carry that much around just in case. We’re not big on credit cards though we do have them for those times where cash won’t do. It’s an age thing I think since I’m 61 and he’s heading toward 60. When we started working as kids, 14 to be exact, we got paid in cash. Strange I know but true. BTW we are also licensed to carry other things so we don’t much worry about the mugging thing.


44 posted on 10/19/2012 2:21:04 PM PDT by jwalsh07
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To: Ken H

For savings, I recommend you choose a metal: Gold or Lead, or both if you have extra funds.


45 posted on 10/19/2012 2:27:38 PM PDT by research99
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To: R. Scott

Good job! I try to impress on my kids that if you don’t have the cash don’t buy it. Doesn’t always work though. :-} Buying a home would be an exception to that rule.


46 posted on 10/19/2012 2:29:40 PM PDT by jwalsh07
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To: rightwingintelligentsia

If at all possible, do store up some mattress money right now. January has half a dozen major economic traumas that the Democrats are more than willing to cause by inaction, as lame ducks, if they badly lose the election.

There could be bank holidays, and who knows what all else.

Fortunately the pressure will slowly ease after January 20th and the inauguration.


47 posted on 10/19/2012 2:48:23 PM PDT by yefragetuwrabrumuy (DIY Bumper Sticker: "THREE TIMES,/ DEMOCRATS/ REJECTED GOD")
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To: old and tired

I think the problem in a lot of cases is that not only do they have no savings, they have maxed out their credit card(s) on frivolous stuff.

I was there, long ago. I made a choice to live differently. I paid off all my debts, and only use a credit card for the convenience. I pay it off every month, and don’t use it for anything I can’t pay off that month.

I also got off the car payment treadmill. I bought only the car I could afford, with cash, but saved what would have been a car payment so I could pay cash again the next time.

I refinanced my mortgage to a 15 year term, and a couple of years ago the balance was so low that I wasn’t even even itemizing deductions on my tax return. So, I paid it off, and we are truly debt free.

I had to make a lot of sacrifices to get here, at least compared to my peers. No flashy car every few years, no expensive vacations. But, we don’t worry whether I will have a job tomorrow.


48 posted on 10/19/2012 3:13:21 PM PDT by justlurking (The only remedy for a bad guy with a gun is a good WOMAN (Sgt. Kimberly Munley) with a gun)
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To: rightwingintelligentsia

“I’m rather skeptical myself. But maybe if they only polled Obama voters, it might be accurate.”

Be skeptical all you want. I worked in local government, and there are people living in four-five bedroom houses who are in debt up their eyeballs, and they have great difficulty paying property taxes. And a good number of these folks consider themselves conservatives.

Gee, sergeantdave, how did that happen?

Well, these conservatives never got off their fat asses to agitate against property tax increases, or oppose who got a chair on the local tax board, the county zoning commission or the town building board.


49 posted on 10/19/2012 4:49:26 PM PDT by sergeantdave (The FBI has declared war on the Marine Corps)
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To: tnlibertarian

Same here. All our vehicles are used. Drive them till they drop.


50 posted on 10/19/2012 7:40:54 PM PDT by TheWriterTX (Riding the Long-Wave Economic Contraction, Baby!)
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