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Old Today, 08:09 AM
 
1,775 posts, read 869,471 times
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"A record $2 trillion surge in cash hit the deposit accounts of U.S. banks since the coronavirus first struck the U.S. in January."
https://www.cnbc.com/2020/06/21/bank...first-hit.html

How does this bode for the future?.
Having read this section often, I know the majority of posters seem to feel our economy is safe; at least in the short term.
Is it really ever safe?.
Charles Schwab already has my savings wrapped up in various venues, so am considering physical silver as a hedge; as opposed to dumping more and more cash into a checking account.
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Old Today, 09:11 AM
 
Location: The Triad (NC)
30,227 posts, read 66,741,855 times
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Quote:
Originally Posted by Sunbiz1 View Post
How does this bode for the future?
That depends on when "the future" actually begins.
I get the sense that most don't think the future will/can begin until January...


The deeper questions are about what happens to (FITB's here)...
before the grown ups can get their hands back on the tillers.
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Old Today, 09:44 AM
 
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Quote:
Originally Posted by MrRational View Post
That depends on when "the future" actually begins.
I get the sense that most don't think the future will/can begin until January...

I suppose the silver lining is, people are actually concerned enough to be saving money for a change.
Of greater concern might be where to save it during these uncertain economic times.
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Old Today, 10:53 AM
 
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I don't think the question can be answered in a vacuum. That money largely replaced some hundreds of billions in lost wages and other income and for the most part was spent-through into the general economy. Just off the west wall, I'd bet it's something close to a wash, once you take into account the sudden changes in spending habits and so forth. (E.g., far less spent on dining out, etc.)

I am not so sure about the large portions that went to corporate coffers; the trend has been for large companies to use that free money/giveaway/corporate welfare to solidify wealth positions via stock buyback, etc.
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Old Today, 03:30 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
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I hate to bring this up, but every federal taxpayer in the USA got a stimulus payment from Uncle Sam. Most of those were automatic deposits - and the total amount was . . .2 trillion. Of course all that money was deposited, before being spent, or moved to savings.
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Old Today, 05:19 PM
 
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I read the question as "Two tril is dumped on the US. What happen/ed/s?"

To which the answer is "It replaced about that amount in lost income, so not much, which was the point."
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Old Today, 05:26 PM
 
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Quote:
Originally Posted by Hemlock140 View Post
I hate to bring this up, but every federal taxpayer in the USA got a stimulus payment from Uncle Sam. Most of those were automatic deposits - and the total amount was . . .2 trillion. Of course all that money was deposited, before being spent, or moved to savings.
Up to a certain income level, then decreasing at $75K, and phasing out at about $100K/$200K per couple.
This is certainly some of the new savings, + those moneys of millions of families not spent because of the virus. This is huge pent up demand and might incite a bit more of inflation as we unwind out of the pandemic.
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Old Today, 05:32 PM
 
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Quote:
Originally Posted by Hoonose View Post
Up to a certain income level, then decreasing at $75K, and phasing out at about $100K/$200K per couple.
So, some 91% or more of taxpayers.

Quote:
This is certainly some of the new savings, + those moneys of millions of families not spent because of the virus. This is huge pent up demand and might incite a bit more of inflation as we unwind out of the pandemic.
I'll place my bet that whatever percentage could be saved will end up being trivial — 10%, at the end of the run, maybe. And you have to offset that against some very large number of families and amounts of income simply lost to non-employment.

I'm sure there will be windfall segments, just as there were from the housing crash. But the vague sense that it was some huge win/dfall for most Americans is nonsense. It was a week or two's salary for the lowest third and less as it went up the income ladder.
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Old Today, 06:05 PM
 
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As long as this "trillions" is spread evenly throughout everyone's account, it not make a difference. Of course is not the case. The distribution percentages do matter. Who ever has bigger deposits can outbid people beneath them. If this stimulus money not created from nothing and not freely given, then no one has any more advantage than prior.
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Old Today, 06:08 PM
 
8,349 posts, read 7,505,974 times
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Quote:
Originally Posted by Hemlock140 View Post
I hate to bring this up, but every federal taxpayer in the USA got a stimulus payment from Uncle Sam. Most of those were automatic deposits - and the total amount was . . .2 trillion. Of course all that money was deposited, before being spent, or moved to savings.
Not true, still have not received my check..
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