2 ms·
It's a borrower's market because that saved money is in _businesses_ instead of _personal accounts_, no?
by inetknght 10y ago
It's a borrower's market because that saved money is in _businesses_ instead of _personal accounts_, no?
- Spooky23 10y agoNo. Businesses that generate cash export it overseas to avoid taxation. The Fed basically makes banks maintain huge capital reserves, and allows them to borrow money for nothing. The banks don't pay for your money because the Fed is printing it for them. Because they need to maintain these massive capital reserves, we get the benefit of printing money without circulating it.