Posted on 08/25/2020 11:46:57 AM PDT by RomanSoldier19
With the trajectory of the U.S. economy uncertain, Americans saved a record portion of their monthly income in April.
The savings rate for that month hit an all-time high of 33.5 percent, according to USA Today, citing Commerce Department data. In the months after, that rate fell, but the June rate of 19.5 percent remained nearly triple the normal rate. The average monthly rate of savings was 7.5 percent of income before the pandemic began.
“We’ve never had this much savings,” Tom Porcelli, chief economist of RBC Capital Markets, told the newspaper. “It’s uncharted territory.”
An analysis by Moody’s Analytics indicated that from March through June, American households saved an additional $916 billion compared to pre-pandemic levels. While June is the latest month with available figures, the number will almost certainly surpass $1 trillion once July is added, according to USA Today.
(Excerpt) Read more at thehill.com ...
That isn’t going to help monetary velocity.
But, when people relax and spend more, will the FED let up on priming the pump?
That said, I'm betting some of this is because people in some places in the country couldn't go shopping for months, and just stayed home.
well, yeah, that $2400 my wife and I got went straight into my IRA...................
Americans should read Benjamin Franklin’s “The way to wealth.”
Saving a large portion of your income is a great idea for an individual, but not so great for society.
I have certainly cut back on my spending recently, but the rest of you need to keep spending so that the companies who directly and indirectly supply my income remain in business :)
That isn’t going to help monetary velocity.
But, when people relax and spend more, will the FED let up on priming the pump?
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Unknown because we are hearing the FED wants to see inflation increase lest we become another Japan.
Exactly. Or folks put it in the bank, mattress or whatever. A good portion of it will end up being spent now that it’s stopped.
Dining out is expensive.
Yeah. Orderly, monocultural, Islam-excluding. Awful.
For years, we heard what a low savings rate America has and how we should have X months savings in reserve. So now this is a problem?
For years, we heard what a low savings rate America has and how we should have X months savings in reserve. So now this is a problem?
I’m spending a ton in prepping for the future...
With restaurants, clubs, bars and movie theaters closed a lot of discretionary spending is shut down.
I’m going to be remodeling my living room this fall, plus I’ll be buying new furniture. Because I saved for several years, I’ll be able to pay cash, and won’t need to borrow to do it.
The Government is pretending to give them “stimulus” they cannot spend.
It’s going to steal it back, and then some, in inflation.
l8r
I’ll bet this is skewed towards Whites, so it’s more systemic racism which may prompt more destruction of personal property and other crime.
The lumber section at Lowes was insane for a couple of months. I saw 4x8 OSB go from $9, to $17 to $21 a sheet.
It seems to have quieted down, though. I’ll not be buying any more of that stuff until things calm down.
As long as I can order parts for the ragged jeep collection, money can still flow.
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