MarketWatch-
Even a decade removed from the housing bubble, with the unemployment rate at 20-year lows, the U.S. household is still scarred by the financial crisis.
That’s the contention of a new report from Deutsche Bank economists Matthew Luzzetti, Brett Ryan and Justin Weidner, who talk of a household “savings glut.”
The economists say there’s a large disconnect between household savings and wealth.
Given the typical wealth-to-income ratio, the household savings rate should be closer to 1%. It’s remained about 6%, the economists point out.