> I took "This free money" to mean the money flowing into finance
Yeah, that's a different argument. Its arguing that low-cost finance is crowding out savings. However, in this case if you look at the savings rate, its still a little too high relative to historical averages. Of course, 2020 is nuking all of the statistics. But prior to the COVID shock, both gross and personal savings were high and climbing despite constantly juicing the markets with cheap finance.
Yeah, that's a different argument. Its arguing that low-cost finance is crowding out savings. However, in this case if you look at the savings rate, its still a little too high relative to historical averages. Of course, 2020 is nuking all of the statistics. But prior to the COVID shock, both gross and personal savings were high and climbing despite constantly juicing the markets with cheap finance.
https://fred.stlouisfed.org/series/PSAVERT https://fred.stlouisfed.org/series/GSAVE