The Core

Why We Are Here => Economics & Investing => Topic started by: ergophobe on May 29, 2026, 03:09:23 PM

Title: Derek Thompson: I’m not saying it’s time to panic
Post by: ergophobe on May 29, 2026, 03:09:23 PM
QuoteI'm not saying "time to panic" so much as I'm saying it's not entirely awesome that the highest level of delinquencies since the 2008 financial crisis are coinciding with near-record low savings rates during a period of stubbornly high interest rates and rising inflation

https://x.com/DKThomp/status/2060363015883558947?s=20


Context - the savings rate has only been lower twice in the last 60 years - just before the 2008 downturn and just after the Covid reopening when Covid subsidies ran out but people were desperate to treat themselves
Title: Re: Derek Thompson: I’m not saying it’s time to panic
Post by: rcjordan on May 29, 2026, 03:44:22 PM
Not to worry...

"Academic literature would tell you lower savings rate can mean one of two things: the kind of doomer view you took, or that people have more confidence"

Bessent Says Americans Dipping Into Savings To Support Themselves Could Be A Good Sign, Actually

https://uk.finance.yahoo.com/news/bessent-says-americans-dipping-savings-191714616.html