Michael Burry, the fund manager of The Big Short fame, recently said that Americans are spending too much money, thanks to Covid stimulus spending.
Well, Michael Burry is correct. In June, the US Personal Savings Rate YoY clocked-in at -44.9%. But the personal savings rate YoY has been negative since April 2021. Add to that the miserable REAL Average Weekly Earnings YoY on Americans and we have a serious problem.
Note that M2 Money growth YoY has declined as the Federal stimulus evaporates.
So yes, Michael Burry is correct.
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