The fiscal and monetary responses to the "coronavirus" created a surge in savings. While many hope those savings will go back to work, the "savings mirage" won't save the economy.
In recent weeks, there has been a good bit of chatter about the surge in the "savings rate." The rate has now jumped to the highest levels seen in the last couple of decades, suggesting the consumer is now "well-positioned" for a "consumption comeback."
As Bank of America's Michael Hartnett suggests, the consumer has the "ability" to finance the recovery.
The hope is that these