What will happen with households' excess financial savings?

We look at the situations of the United States, the euro zone and France. In late 2020, households in these countries had a very large savings surplus, due to the impossibility of spending due to the health crisis while incomes had been stabilised by fiscal policies. How will this financial savings surplus be used? We do not believe it will be consumed; lost consumption cannot catch up, the intentions to save remain strong; We believe they will be invested, and there are then three possibilities: Investment in risk-free assets (cash, risk-free bonds, life insurance); Real estate investment; Efficient investment in companies' equity, in useful infrastructure (energy transition, digital infrastructure, etc.), in innovation, etc. If there is investment in risk-free assets, the role of financial intermediaries (banks, insurance companies) in financing the economy will increase, and the debate on their regulation will gain momentum . If there is real estate investment, real estate prices will rise sharply with the unpleasant effects that this entails. It then remains for governments to introduce incentives to steer the excess savings into efficient investments.