The rich get richer and rates get lower
I wonder if this is an artifact of how they are looking at the savings rate. If you think of someone wealthy like Bezos, he is rich on paper because the value of his shares of Amazon increased. This is not taking any liquidity out of the system. It&#x27;s not &quot;excess savings&quot; because it&#x27;s not income that is being saved.<p>Of course, he isn&#x27;t typical of the top decile, but is typical of the most wealthy. I wonder if this is a bit like Piketty, where the driver was actually real estate appreciation. For the top decile, they are are still putting the most money into real estate, and the prices continue to be bid up. Real estate is where prices are most directly driven by interest rates that allow people to borrow ever more. So maybe their &quot;excess savings&quot; is just bidding up the price of housing.