1) Why is the Savings Rate so low?
Because for the last 18 Months Americans have been ravaged by Inflation (orange line).
Meanwhile – Wage Growth (blue line) has not kept up. Not even close. pic.twitter.com/T59hRPUSft
— Nick Gerli (@nickgerli1) January 10, 2023
3) Spending cutback + deflation will of course cause a Recession. Potentially a big one.
The stakeholders who will likely get hit hardest in this Recession are:
1) Asset owners (stocks/housing)
2) Debt holders (mortgages/credit cards/car debt)
3) Businesses that lose money— Nick Gerli (@nickgerli1) January 10, 2023
https://twitter.com/WallStreetSilv/status/1612933953366679553
Equity markets right now: Hallelujah, inflation is falling
Equity markets in 2-3 months: OOOOH, that what why inflation was falling
— Andreas Steno Larsen (@AndreasSteno) January 10, 2023
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