Spencer Jakab
speaker
981 appearances
14 recordings
1 series
first heard Jul 2017
last heard Jun 2021
Spencer Jakab’s voice in public audio — every appearance, attributed to the second.
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Appearances
WSJ Your Money Briefing · Prepared for a Rainy Day? U.S. Savings Rate Remarkably Low · 1 Nov 2017
podcast
They were spending kind of phantom gains in the value of their house.
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But today is not like that.
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And so the fact that you see a really low savings rate today is pretty remarkable.
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It's a lot lower than it was during the peak of the dot-com boom, for example, when there was a
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much stronger stock market boom than today, you could argue.
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No, it's simply income minus spending.
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So it's the difference between income and spending.
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Obviously, for some people, their savings rate can, for a while, be negative.
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You can go and borrow, spend beyond your income.
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But that's looking basically at all American households and saying how much they're making.
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And income is coming up, but it's not rising at a crazily fast clip, given the fact that we're well into an economic expansion period.
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And spending has risen at a faster clip, and that's why the savings rate has shrunk to the lowest level of this expansion.
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If incomes begin to rise more quickly and people don't spend all the gains in income, then, like I said, the Fed is going to feel pretty comfortable going on with its series of rate increases, which is not necessarily a great thing for stock market investors.
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On the other hand, if incomes don't do great, but people feel less confident in spending so much of their income, almost 97% of their income, then that's an even worse outcome for markets and for investors.
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No, they don't.
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No.
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And if you look at past, obviously hindsight is 20-20.
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You know, you look at what people were doing in 2006 and 2007.
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They didn't know that the worst recession of the entire post-war era was right around the corner.
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If they did, they may not have been so profligate.
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Showing 801–820 of 981 · page 41 of 50
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