#2023economicoutlook #economicoutlook #biggerpockets #texasrealestate #economicforecast
In this video, I'll give my best guess of what we can expect for the economy in 2023.
Contrary to expectations, in the latest jobs report, unemployment is down again. The general economy is plugging along. Even with higher interest rates! However, there is a real concern that the draining of excess savings generated during the pandemic is propping the economy up.
New data from JPMorgan Asset Management published Monday shows estimated "excess savings" from U.S. households now stand at $900 billion, down from a peak of $2.1 trillion in early 2021 and roughly $1.9 trillion at the beginning of last year.
According to Bank of America excess savings are falling by about $100 billion each month, and upper-income households now hold about 60 percent of those savings.
If the economy is being artificially propped up by this unsustainable excess savings spending, then the possibility for the FED to view the latest economic data and continue to raise rates could very likely have an overcorrecting impact on the economy. Keep an eye on the burn of the excess savings.
https://www.vox.com/policy-and-politics/2022/12/13/23500066/pandemic-savings-inflation-recession
https://news.yahoo.com/consumer-savings-spending-pandemic-economy-141619694.html
