"I must apologize for falling asleep on the job. I hadn't spotted that the US personal saving ratio (SR) had laid all the way back to what I would describe as crisis levels... July's decline below 3% should be sounding a very loud warning klaxon in the ears of investors to not forget what happened in 2008 when the SR fell this low."
"The low savings rate attests to strong consumer spending, which has propped up the economy so far. That sounds like it should be good news, but the issue is that the savings rate is likely to rise again after plummeting to such low levels..."
"Forecasters have argued the economy could experience a slowdown once consumers pull back on their spending and begin to build their savings again. That was what happened leading up to the Great Financial Crisis, when an uptick in the savings rate preceded the recession."
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