Three potential explanations for the continued fall in US savings rate

I have been tracking the savings rate on this blog for some time.  What has been obvious to me and other observers is that the U.S. has had a declining savings rate since the secular bull market in bonds and shares began in the early 1980s. Indeed, it seems likely that there is a correlation between asset prices and savings rates in the United States.
However, we have now experienced a spectacular bust in asset prices. Many pundits including myself expect a secular shift away from consumption toward saving.  However, the data do not show this shift.  In fact, after peaking this past Spring at 6.4%, savings rates have plummeted to 3.1% in the last month. What gives?
Well for one, asset prices have skyrocketed since then. And it does seem that the prior correlation between asset price incr...

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