As the P³ keeps telling us people save after a recession. There will be no economic bounceback:
U.S. GDP growth remained strong at 6.5% in the second quarter, sufficient to push GDP above its pre-pandemic level. Growth topped the fourth quarter’s revised 6.3%, according to the Bureau of Economic Analysis’ preliminary estimate. Annual revisions altered prior data back to 1999. Strength was led by consumer spending as consumers benefited from two rounds of stimulus. Fixed nonresidential investment and exports also contributed to growth. Inventories and imports were the largest offsets. Real disposable income plunged 30.6% as stimulus faded. Income soared 57.8% last quarter. The saving rate dropped to a still-high 10.8% from 20.9%.