Citizens Are Saving Money: A Pessimistic Sign For The Future
Wall Street is acting like all is well with the economy. Individuals are taking a different approach.
In this video I discuss how more than $2 trillion was put into banks, jumping the individual savings rate and how this is a negative sentiment for the economy.
▶️ 3Speak
0
0
0.000
Well you're totally right, when people feel that there's financial assurance, there job is guaranteed and their bank statement isn't bad then they spend sometimes without any sort of reckoning. I mean it's a real concerning angle you're speaking From
This video is in direct opposition to your stance on why technology is creating all the deflation. The premise of this vlog is the reason that deflation is being created. Tech creates consistent reliable deflation. It's this fear that creates crazy unpredictable deflation that the FED doesn't know how to handle because no amount of money printing can stop it.
When the fear of a collapsing economy melts away (because it has already collapsed and on the way to recovery) is when all that money suddenly gets dumped back into circulation, completing the cycle of fishtailing and creating inflation and a weak dollar. I guess we'll see in 2 years where we're at. This is a slow-motion train-wreck.
Also I'd like to point out that tech doesn't reduce monetary velocity; it increases it. The deflation we are seeing is created by fear. Deflation by technology is created by abundance. When things are abundant or new products hit the shelves people want to buy them (or the cheaper older model). This increases velocity, which is good for the economy. The kind of deflation that tech creates is a boon to the economy, and has nothing to do with the shit-storm we are in today.
Yeah this Market is in a bubble, imho. I think your assessment may be right
Summary:
In this video, Task discusses how banks are seeing an influx of cash deposits amidst the current economic climate in the United States. He highlights the shift in people's behavior towards saving instead of spending or investing due to uncertainties surrounding job security, financial stability, and the overall economic outlook. Task points out that the rise in cash deposits reflects a lack of confidence in the optimistic narratives presented by experts and politicians about a quick economic recovery. He mentions the need for additional stimulus packages and reflects on the various uncertainties that are influencing people's decisions, such as the ongoing pandemic, civil unrest, job insecurities, and the uncertainty surrounding future plans like returning to school in the fall.
Detailed Article:
Task opens the video by addressing the noteworthy increase in cash deposits in banks. He touches on the recent trend where more individuals are opting to save money rather than engage in riskier financial behaviors like spending or investing. This change in consumer behavior, according to Task, is indicative of the prevailing sentiment of fear and uncertainty among the populace.
He contrasts this behavior with times of economic prosperity when people tend to take on more debt and spend freely, driven by optimism about their financial future and job security. Task emphasizes the historical context of low US savings rates and observes that the current surge in cash deposits signifies a shift towards risk aversion.
Task delves into the impact of uncertainties on people's decisions, referencing the staggering number of first-time unemployment claims and the broader economic repercussions. He points out that despite some experts and policymakers touting a positive outlook for the economy, the American public's actions speak otherwise, evident through the calls for further stimulus packages.
The discussion extends to various uncertainties plaguing individuals, from medical concerns amid the pandemic to doubts surrounding job stability and future plans such as returning to school. Task underlines that the public's increasing reliance on cash reserves reflects a lack of faith in the narratives propagated by political figures, financial analysts, and economists who paint a rosier picture of the economic landscape.
Task concludes by highlighting the insufficiency of certain industries to provide secure employment, citing examples like the airline sector that may face significant challenges in the coming months. He ends the video by expressing well wishes and hints at future discussions on related topics.
Overall, the video provides a critical analysis of the current economic climate, emphasizing the disconnect between public sentiment and the optimistic projections put forth by various sources. Task's insights shed light on the nuanced factors influencing individual financial decisions during times of uncertainty and instability.