That’s the title of a Timiraos/WSJ article three days ago: Typically in the recovery from a downturn, households are more cautious about spending and are likely to save. When rates are low, borrowing supports spending. High rates choke off that spending. This time, economic activity has been supported more by wealth and incomes than by credit. The pandemic altered spending habits which, together with higher asset prices, solid job prospects and government stimulus, left more households feeling flush. As I noted in a previous recounting business cycle indicators for May/April, the answer to the above question could ... (full story)