99% of Americans will be financially worse-off than pre-pandemic by mid-2024: Business Insider

2023-12-08 17:13:17CGTN Editor : Mo Honge ECNS App Download

Most Americans have depleted their excess savings accumulated during the COVID-19 pandemic, Business Insider reported on Friday, citing JPMorgan, noting that nearly everyone is likely to be worse off financially in the coming months than they were in 2019.

Marko Kolanovic, JPMorgan's top stock strategist said in a Thursday note that 80 percent of consumers have already burned through any savings buffer they may have built during the lockdowns.

"It is likely that only the top one percent of consumers by income will be better off than before the pandemic," Kolanovic was quoted as saying, pointing to the rising signs of delinquencies on auto loans and credit cards, as well as Chapter 11 filings.

Chapter 11 is a U.S. mechanism allowing a company to restructure its debts under court supervision while continuing to operate.

"There are no significant delinquencies in residential mortgages yet, as consumers locked in low interest rates," Kolanovic said. "However, existing home sales have dropped near record lows, and around $6.5 trillion of commercial real estate debt remains an overhang."

In August, Johan Grahn, head ETF strategist at Allianz Investment Management, has warned that despite a strong labor market and robust consumer spending, a study by his firm shows that the average Americans are actually very concerned about paying bills, with many having already dipped into their retirement savings.


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