The Expert Podcast

Oh look is this whole economy just a house of cards waiting to collapse Well a lot of CEOs think so…Many fortune 500 CEOs that were interviewed warn that us households are burning through savings and could run out of cash within months. What they're saying is that a lot of people. Had excess savings because of the March, 2020 stimulus, higher wages but also lower expense people couldn't go out to eat They couldn't go to the movies. They couldn't spend money in a lot of things. So that built up a lot of savings. Now inflation is eating away at those savings and people aren't. receiving as much income A lot of people are doing the great resignation, a lot of it's because they had extra cash. Which helped helped keep consumer spending strong part of what made prices go up. There was 2.5 trillion in excess savings. Because of pandemic and higher wages at work. But now that money is almost used up. It's almost like you've seen those stories somebody wins the lottery. And they're bankrupt within two years. Because they have excess cash. I don't know how to manage it and spend it And now they use it all up quickly. What are the, what are the stats What's the data Don't take our word for the personal savings rate. Is a 14 year low. That's half the rate It wasn't December, meaning that this happened quickly. So from December until now it got cut in half. Many households are already in negative savings meaning that they're tapping their say. to cover their purchases every month…It's a consumer driven. Economy…Most people have six to nine months of spending power left. So all those people that did great resignation quit their jobs because they had extra cash. Maybe they made some money in crypto…Is the party over ? What do you think. What do you see in your area ? What do you see in your circle of friends ? In your own. Economy. Your own budget. Do you have a lot of cash built up Did you burn through cash ? If you're a business owner do you see. Less discretionary spending. Because. Maybe consumers are running out of steam Now inflation's part of it. But are people just buying less to begin with Tell us what you think in the comments.