Posted on 05/27/2022 9:45:21 AM PDT by Browns Ultra Fan
Americans’ Savings Rate Drops to Lowest Since 2008 as Inflation Bites.
Yes, inflation really bites. In fact, as US inflation is near the 40-year high, US personal savings declined -65% YoY as consumers try to cope with rising prices.
Its not only that personal savings is crashing in the face of inflation, revolving debt has soared as consumers try to cope with rising prices. I call this chart “The Biden Bowl.” Soaring consumer credit card debt with crashing personal savings.
(Excerpt) Read more at confoundedinterest.net ...
Good. Stupid should hurt.
And your stock market keeps going up and up and up. Something rotten in America.
Um, the stock market just had a 25-30% adjustment in prices.
However, if you have any restaurant gift cars laying around, I would use them up before they go out of business. If people have to pay more to fill their gas tank, heat and AC their house and buy groceries something has to get cut out of the budget.
Nominal Interest Rate minus the Inflation Rate equals the Real Interest Rate. When the inflation rate is higher than the nominal interest rate the Real Interest Rate is negative. When the Real Interest Rate is negative savings will decline as people buy real assets that can be paid for with deflated dollars.
Ironic that Charles Payne and his guests are just gleefully full of themselves right now, at this moment (East Coast time), about how things are on the upturn and consumer spending is up and la la la. Crazy stuff and crazy interpretations going on over there, never once mentioning how credit card usage and debt are going through the roof.
The stock market has tanked since early Dec 2021.
My stock is down from it’s high by about 40%.
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