TSX:AX.PR.E - Post by User
Post by
Torontojayon Sep 02, 2024 9:11am
567 Views
Post# 36205079
Things are getting worse
Things are getting worse The US personal savings rate has plummeted in July at 2.9% compared to 4.4% last year. Prior to covid, the US savings rate for the decade 2010-2020 was around 5-6% with inflation near the 2% target. The last time the savings rate was this low was prior to the GFC. One thing is for certain is that the savings rate will eventually mean revert as it did in 2008. By that time, people were cutting back on spending and real gdp contracted.
Only 2 ways this can mean revert. People cut back on spending as they did in 2008 or people's income and productivity improve which increases the savings rate.