Stock Market Crash Imminent: Major Crisis Indicators Such As Savings Deposits inflows, Capital Spending, And Household Debt Just Hit Recessionary Level While Derivative Markets Starting to Crack
November 20th, 2012
Is The Largest Weekly Inflow Into Bank Savings Accounts On Record, A Flashing Red Alarm?
When one thinks of America, the word “savings” is likely the last thing to come into a person’s head, for the simple reason that the vast majority of Americans don’t save: recall that in September the personal savings rate dipped to 3.3%, the lowest since 2009 save for one month.
On the surface this makes sense: the average US consumer, tapped out, with more spending than income, has no choice but to max out their credit card, and eat into whatever savings they may have.
This is usually as far as most contemplations on savings go. And this is a mistake, because at least according to official Fed data reported weekly as part of the H.6, which lists the data on the various components of M1 and, more importantly, M2, the real story with US savings is something totally different.
When was the largest ever inflow into Savings Deposits at Commercial banks, at $131.9 billion in one week? This past week.