personal savings rate

Savings Rate Implication For Next Downturn

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Q2 GDP growth was impressive. In fact, the report was so good that the main criticism it is receiving is whether the economy can maintain this pace. The ECRI leading index doesn’t anticipate for this pace to be maintained because it is forecasting a slowdown. Obviously, that’s only one indicator,…CONTINUE READING

Delinquencies & Savings Rate: Truth In Details

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Delinquency rates on credit cards are important because GDP is mostly driven by the consumer. If the consumer can’t borrow money to buy goods and services, a recession is in the cards. This is probably why the chart below has gone viral among the bearish investors. The delinquency rate on…CONTINUE READING

How Healthy Is The Consumer?

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The consumer is the lifeblood of the economy. Austrian economists differ from the mainstream viewpoint on what drives the economy as they say production drives economic growth whereas Keynesian economists believe that consumption and demand drives the economy. The truth is that both the consumer and the producer are important,…CONTINUE READING