Bleak prediction by J P Morgan:
It’s likely that all but the top 1% of consumers will be worse off financially in mid-2024 than they were pre-pandemic, the bank said.
Article:
It is likely that only the top 1% of consumers by income will be better off than before the pandemic
How is that any different from any other time? It’s axiomatic. So, will they be worse off than those who will be better off than they? Or will they be worse off than themselves? What are they talking about?
Given the tid bits mentioned in the article “excess savings” are gone. (Excess savings? What’s that? The part they shouldn’t have?)
Housing sales have slowed. Inflation adjusted liquid assets are down. How does this make 99% of people worse off than before covid? They’re still here. They’re still working (probably more of them are working) They still buy stuff. They still watch football, feed the baby, walk the dog. Tickle them do they not laugh? etc etc. Maybe they need to work on those “excess savings…?”
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Have a rec for the “Merchant of Venice” reference.
Steve
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Inflation. High inflation hurts everyone (well, 99% of everyone).
DB2
We know. We also know or can discern my post had nothing to do with that relationship.
On that we disagree. And perhaps also the JPMorganers:
"“Consumers are facing tighter credit conditions and rising rates, wind-down of Covid-era stimulus and relief programs, declining excess savings and liquidity, and multiple years of above average inflation,” JPMorgan strategists wrote at the time.
DB2
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I’ve just realised that it’s J P Morgan, the US government’s wingman.
It’s probably a political statement re next year’s election.
The Captain is impressed!
Years ago, I saw a movie where one of the characters had an ambition to play Shylock as a sympathetic character. His speech in “Merchant” is a plea for equal rights and justice, in having his contract enforced.
Hath not a Jew eyes? Hath not a Jew hands, organs, dimensions, senses, affections, passions; fed with the same food, hurt with the same weapons, subject to the same diseases, healed by the same means, warmed and cooled by the same winter and summer as a Christian is? If you (p)rick us do we not bleed? If you tickle us do we not laugh? If you poison us do we not die? And if you wrong us shall we not revenge? If we are like you in the rest, we will resemble you in that. If a Jew wrong a Christian, what is his humility? Revenge. If a Christian wrong a Jew, what should his sufferance be by Christian example? Why, revenge. The villainy you teach me I will execute, and it shall go hard but I will better the instruction.
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