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actually people tended to spend only 40% of their stimulus checks on new items …30% was saved and 30% went to pay down old debt.. so 60% of the dough never went in to buying anything new.
overall ,out of all the stimulus money allocated for all the different reasons , 2 trillion of it still has not been given out
I don't quite understand your point. So ONLY 40% of stimmies was spent directly on goods. How much money is that exactly? Individuals paying down debt leads to more consumption. Isn't that point self evident? Paying down debt frees up discretionary income which can then be saved or spent. What's the savings rate in the US? Every dollar of debt paid down, led to 85 cents in consumption.
Furthermore, just another story came out today that over $100bn of PPP loans were obtained fraudulently. These are probably the most egregious cases that the Feds have to own up to and prosecute.
What do you think people do with fraudulently obtained federal funds? They launder it. How is money laundered? By buying tangible assets.
actually people tended to spend only 40% of their stimulus checks on new items …30% was saved and 30% went to pay down old debt.. so 60% of the dough never went in to buying anything new.
overall ,out of all the stimulus money allocated for all the different reasons , 2 trillion of it still has not been given out
More numbers being pulled from you know where... I don't buy it. I think you're describing the upper middle to upper class America. Those Americans did not spend their stimulus checks and either saved them or invested them. That's who the analysts talk about when they say that the consumer is flush with cash. However, the poor American is not flush with anything because they used their stimulus check to try to pay down debt, buy food, etc.
Quote:
Originally Posted by SeventhFloor
Oh no
Juniors?? One of my favorites?
Ok I'm concerned now.
We're doomed.
LOL I remember years ago taking my mother out to Junior's during the holidays. It was easily one of the worst meals we've ever had and I felt bad about it, but that's where she wanted to go.
The free money made things worse. I remember going to Burlington Coat Factory in the high of the pandemic to buy socks. The store racks were EMPTY! I thought that they were going out of business. I asked the store clerk as I didn't see signs saying they were going out of business. She said people were buying up everything with their stimulus checks.
I was going to buy a new car. I bought my car 10 years ago and it needed some work that was costing $4000. When I enquired about the price of used cars and the shortage of available cars I was told that cars were flying off the shelves!! All this free money floating around.
Needless to say I negotiated a discount and fixed my car. I am going to drive it until the wheels fall off. Everything is scarce or super expensive.
The car market is retarded now and it's mainly because there are plenty of retards fueling what's happening.
I don't quite understand your point. So ONLY 40% of stimmies was spent directly on goods. How much money is that exactly? Individuals paying down debt leads to more consumption. Isn't that point self evident? Paying down debt frees up discretionary income which can then be saved or spent. What's the savings rate in the US? Every dollar of debt paid down, led to 85 cents in consumption.
Furthermore, just another story came out today that over $100bn of PPP loans were obtained fraudulently. These are probably the most egregious cases that the Feds have to own up to and prosecute.
What do you think people do with fraudulently obtained federal funds? They launder it. How is money laundered? By buying tangible assets.
savings rates were at one of the highest levels we ever saw .the money was not being spent …people were hoarding it.
Only more recently did those numbers start to come down
LOL I remember years ago taking my mother out to Junior's during the holidays. It was easily one of the worst meals we've ever had and I felt bad about it, but that's where she wanted to go.
I've only eaten at the actual restaurant once. What did you eat there?
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