Delayed Dissipation
10/03/2023 |
The current expansion we are in hasn’t yet turned into a recession, largely because of substantial fiscal stimulus which has yet to fully dissipate. However, by year end excess savings will probably have been depleted, and starting in 23Q4 student loan repayments recommence. The onset of 2008/09 recession was similarly delayed thanks to the housing bubble and the resulting cash-out refi boom which supported consumer spending.