Excess Returns · Friday, August 14, 2026
Paulson expresses concern over the consumer's situation, citing eroding real purchasing power, a negative attitude towards economic conditions, and record-low personal savings rates. He notes that while some higher-income groups may be accessing stock portfolios, the majority of consumers lack such options, making them vulnerable to weakening wages and income.
“And, uh, you know, I just, I think that, you know, basically when I look at the consumer today, they don't have any jobs. Their real purchasing power is eroding.”
“Okay? They have a pretty lousy attitude about conditions on Main Street. And their personal savings rates are at a record low.”
“But boy, that's not a good story for the great bulk of the American consumer that really drives the economy. They don't have that option. And their options are saving or wages income. And neither one of those are very good, particularly if you're buying out of inflation. And I just don't know how long we can sustain that.”