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  • U.S. savings rate hits record 33% as coronavirus causes Americans to stockpile cash, curb spending

    From cnbc.com

    The coronavirus crisis has Americans hoarding more money than ever before as widespread fear paralyzes consumer spending habits. The swiftness and severity of economic recovery in the U.S. hinges on whether consumers continue to stockpile cash or start to spend again. The personal savings rate hit a historic 33% in April, the U.S. Bureau of Economic Analysis said Friday. This rate — how much people save as a percentage of their disposable income — is by far the highest since the department started tracking in the 1960′s, and surpasses consumer savings during the Global Financial Crisis. April’s print is up ... (full story)

US economy based on people spending, not saving.
yes ... and expanding debts.
People start realizing that liquidity should be their top priority ... (be self-sufficient before anything else) ...
Look for more stimulus to the people to try to encourage them to spend.

Saving = Deflationary Pressure. By the way.

Despite all the MEGA printing, we are still seeing dollar strength. The huge deflationary event still isn't over.
One smart American once said:You can bring horse to the water,but you cannot force him to drink.
  •  Guest
  • | IP XX.XX.171.132
Lock down paralyses consumer spending , no one is buying houses, cars, holidays,going to restaurants etc etc. It’s obvious if you don’t go out you don’t spend, so you save.!! It doesn’t take much working out.
  •  Guest
  • | IP XX.XXX.31.50
The more than 40.7 million people unemployed recently in the U.S. are going to be reluctant to spend money frivolously.
Quoting Guest
The more than 40.7 million people unemployed recently in the U.S. are going to be reluctant to spend money frivolously.
Yep. Also deflationary is defaulting on your mortgage. 680T derivatives right now. If those start to crash out the banks are in even bigger trouble. Then the FED will own the whole country.
  •  Guest
  • | IP X.XXX.176.80
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  • Story Stats
  • Posted: May 29, 2020 8:51am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 8  /  Views: 5,893