"Consumers across the globe are still loading their pantries and the economic fallout from the virus is just starting...
"You could see wartime rationing, price controls and domestic stockpiling," said Ann Berg, an independent consultant and veteran agricultural trader." (Bloomberg)
CNBC: "Psychologists ..weigh in on why our brains push us to panic buy-- even when authorities are assuring the public there's no need to. According to Paul Marsden, a consumer psychologist at the University of the Arts London,"
"It's about 'taking back control' in a world where you feel out of control"When people are stressed their reason is hampered, so they look at what other people are doing. If others are stockpiling it leads you to engage in the same behavior. People see photos of empty shelves and regardless of whether it's rational it sends a signal to them that it's the thing to do"." (CNBC)
7 Most Americans have no savings
From Yahoo Finance:
Saving money continues to be a challenge for Americans".
Since 2015, GOBankingRates has asked Americans how much they have in savings. Each year, the survey results have shown that a majority of adults don't even have $1,000 in a savings account"
This year, GOBankingRates asked more than 5,000 adults, "How much money do you have saved in your savings account?" Respondents could choose from one of seven options:
The survey found that 58 percent of respondents had less than $1,000 saved.
"It's always concerning when a large part of the population is seemingly living paycheck to paycheck because when unexpected personal or financial hardships occur, it can be challenging to recover without adequate savings," Jason Thacker, head of consumer deposits and payments at TD Bank, said." ("58% of Americans Have Less Than $1,000 in Savings, Survey Finds", Yahoo Finance)
8 Household debt is at an all-time high
From CNBC: "Household debt surged in 2019, marking the biggest annual increase since just before the financial crisis, according to the New York Federal Reserve.
Total household debt balances rose by $601 billion last year, topping $14 trillion for the first time, according to a new report by the Fed branch. The last time the growth was that large was 2007, when household debt rose by just over $1 trillion....
"The data also show that transitions into delinquency among credit card borrowers have steadily risen since 2016, notably among younger borrowers," Wilbert Van Der Klaauw, senior vice president at the New York Fed, said in a statement." ("Household debt jumps the most in 12 years, Federal Reserve report says", CNBC)
9 Many businesses might not survive long enough to get stimulus
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