The San Francisco Fed has updated its analysis of COVID-era savings based on more recent data, and it now concludes that the money saved from pandemic relief programs is pretty much gone:
The SF Fed estimates that only $190 billion is left in excess savings—and the odds are good that even that is mostly in the hands of the affluent, where it does little good. The average consumer has nothing left aside from what they normally hold.
Generally speaking, this is fine. The whole point of the pandemic relief programs was to sustain spending during the pandemic by giving people money they could gradually spend down. That's been propping up the economy longer than anyone anticipated, but no longer. We now have to make do with what we earn.
Generally speaking, this is fine... We now have to make do with what we earn.
Is it just me, or does this have some Marie Antoinette vibes? "Generally speaking, everyone is back to just barely getting by... everything's good."
In Heaven everything is fine.
Says the guy who's quite comfortably retired.
Make do with what we earn? That's not America! That's not even Mexico!
We’re one of the few families who never got any of that sweet pandemic cash. Haven’t been able to find out why, but it doesn’t matter. I’m glad lots of people who seriously needed it got help. But I sure would love to know what Kevin’s retirement stash is. Just a round number would be fine. As it stands, we both work for a combined income of around $115k, own our house outright , have only one car payment, and family help for our kids to go to college. I still can’t afford homeowners insurance, have been steadily selling off possessions to obtain funds for medical bills and car repairs, and my wife’s income is almost entirely taken up by groceries. Make do with what we earn? Make do?? With what we earn?!? Get the hell off my lawn.