The Blubber

The amount of cash sitting in household and non-profit checking accounts is four times more than what it was before the pandemic, per Bloomberg.

Americans outside the wealthiest 20% of the country have run out of extra savings and now have less cash on hand than they did when the pandemic began, per Bloomberg.

For the bottom 80% of households by income, bank deposits and other liquid assets were lower in June this year than they were in March 2020, after adjustment for inflation.

Over the same timeframe, the least affluent 40% of Americans have witnessed an 8% decrease in their savings. Moreover, the subsequent 40%, a segment that aligns roughly with the U.S. middle class, saw their cash savings fall below levels seen before the pandemic in the previous quarter.

Collectively, household net worth surged by approximately $5.5 trillion during the April-June period, reaching an all-time high, as indicated by data from the Federal Reserve. This increase was primarily propelled by gains in housing value, which represents a less liquid form of wealth, and by stock market gains, with stock ownership primarily concentrated among wealthier households.

Read more: https://unusualwhales.com/news/americans-outside-the-wealthiest-20-of-the-country-have-run-out-of-extra-savings-and-now-have-less-cash-on-hand-than-they-did-when-the-pandemic-began