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'Savings' is not a worthwhile goal in and of itself. If all you do with your savings is stuff it under the mattress or lend it to banks who in turn lend it to
by aianus 11y ago
'Savings' is not a worthwhile goal in and of itself.
If all you do with your savings is stuff it under the mattress or lend it to banks who in turn lend it to homebuyers to perpetuate the greatest property bubble in history... you're going to have a bad time.
- brc 11y agoSavings are a necessary pre-requisite for investment. On balance it is better to have savings than debt. Creating bubbles in certain asset classes is usually the fault of differential tax or regulation treatment for that class. It can be avoided by not creating special classes. The story of savings being stuffed into mattresses is usually followed by some type of incorrect Keynesian thinking. It's so rare that it is not a problem. A 'general glut' as it used to be called has nothing to do with hoarding savings.