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Fed Officials Thought Americans Had Trillions In Excess Savings, New Data Shows They Were Wrong
Benzinga ^ | 11/16/22

Posted on 11/16/2022 8:27:15 AM PST by EBH

It seems the strong consumer demand born out of a stay-at-home stimulus-laden pandemic environment is continuing into the end of 2022, and probably 2023 as Federal Reserve data issued Tuesday shows a sharp rise in household debt during the third quarter.

What happened: Due to significant increases in credit card usage and mortgage balances, American households increased their debt at the fastest rate in 15 years.

Total debt increased by $351 billion for the period of July to September, the largest nominal quarterly increase in 2007, suggesting that the "excess savings" the Fed believed Americans possess has already been spent.

With this increase, the total household debt in the U.S. has reached a record high of $16.5 trillion, an increase of 2.2% from the previous quarter and up 8.3% from one year prior.

Mortgage balances, which rose $1 trillion from a year ago to $11.7 trillion, and credit card debt, which increased to $930 billion, were the two biggest contributors to that debt load.

(Excerpt) Read more at msn.com ...


TOPICS:
KEYWORDS: debt; feds; savings
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To: MeganC

Gold and silver will be taken by those with AMMO!


21 posted on 11/16/2022 8:51:01 AM PST by Gaffer (to )
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To: EBH

So, the nations “accountants” are complete screw ups and have NO idea of how to keep track of money?

Imagine that…


22 posted on 11/16/2022 8:52:08 AM PST by joethedrummer (We can't vote our way out of this, folks..)
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To: TexasFreeper2009

Milk the cow and collect the eggs is what I tell people who are foolish enough to ask my advice.


23 posted on 11/16/2022 8:54:56 AM PST by Sequoyah101
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To: EBH

The Fed doesn’t know the difference between savings and debt.

How encouraging.


24 posted on 11/16/2022 8:55:22 AM PST by seowulf (Civilization begins with order, grows with liberty, and dies with chaos...Will Durant)
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To: EBH

It’s sad that it will take real hardship to get the attention of Americans. I really do feel bad for those that are caught up in this, with no culpability.

As for Democrats, I will take delight in their pain.


25 posted on 11/16/2022 8:56:58 AM PST by brownsfan (It's going to take real, serious, hard times to wake the American public.)
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To: EBH

What the heck are “excess” savings?


26 posted on 11/16/2022 8:57:12 AM PST by E Pluribus Bellum
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To: joethedrummer
So, the nations “accountants” are complete screw ups and have NO idea of how to keep track of money?

Your typical auditor from a big accounting firm isn't much better based on my experience and many of them have no clue when it comes to auditing corporate financials.
27 posted on 11/16/2022 8:58:14 AM PST by SlipperySlope99
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To: kabar

Ping to #11

She’s ba-ack!


28 posted on 11/16/2022 8:59:35 AM PST by Roccus (First we beat the Nazis........then we defeated the Soviets....... Now, we are them.)
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To: EBH

Well, I did last week...and then FTX happened.

Easy come, easy go.


29 posted on 11/16/2022 9:08:16 AM PST by moovova ("The NEXT election is the most important election of our lifetimes!“ LOL...)
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To: E Pluribus Bellum
What the heck are “excess” savings?

According to the Democrats, all savings are excess.

30 posted on 11/16/2022 9:08:28 AM PST by 17th Miss Regt
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To: glorgau

At 8%.


31 posted on 11/16/2022 9:08:39 AM PST by moovova ("The NEXT election is the most important election of our lifetimes!“ LOL...)
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To: EBH

For the past year, the WSJ and other financial sites have had article after article talking about the great amount of savings being held by Americans. I’ve always thought was bullcrap. There is no “stimulus” savings. That money was spent almost immediately when it hit peoples’ banking accounts. I’ve commented that I’ve never before seen the same money being spent repeatedly, while at the same time being saved, as that stimulus money has been.


32 posted on 11/16/2022 9:14:30 AM PST by CFW
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To: TexasFreeper2009
If you don’t have enough money to live off the interest on it without ever touching the principle, you don’t have enough.

IOW, pretty much no one has enough.

33 posted on 11/16/2022 9:24:50 AM PST by gloryblaze
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To: EBH

When they excluded the deep state’s balances, the money available dropped to zero.


34 posted on 11/16/2022 9:37:18 AM PST by Mouton (The enemy of the people is the media )
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To: Sequoyah101

“I am told that people are also taking out credit on the basis of the student loan payment holiday and betting on the come that the debt will be forgiven.”

Too bad they never learned about the Constitution during their “education”—they just figured Presidents have unlimited powers to just give away money...


35 posted on 11/16/2022 9:41:14 AM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: glorgau

At 7% interest. And home values are decreasing.


36 posted on 11/16/2022 9:52:55 AM PST by kabar
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To: EBH

Excess savings? What is that?


37 posted on 11/16/2022 10:17:47 AM PST by heartwood (Someone has to play devil's advocate.)
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To: gloryblaze

at a reasonable 5% rate (currently CD’s are at over 4%) you would make $50,000 a year in interest per million in savings.

2 million = $100,000 interest
4 million = $200,000 interest

I think many could save up 2-4 million


38 posted on 11/16/2022 10:21:54 AM PST by TexasFreeper2009
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To: TexasFreeper2009

I have big CD’s. While a 4% is currently available, it has been for only a short time. And peoples’ maturity dates may not line up....

Yes, some have 2-4 million in ready cash, I suppose ....


39 posted on 11/16/2022 10:49:41 AM PST by gloryblaze
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To: gloryblaze

many older people may have that much in their large family home if they were to sell it.

then they could rent or travel for the rest of their lives on the interest.


40 posted on 11/16/2022 10:54:28 AM PST by TexasFreeper2009
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