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I miss the olden times when there used to be something called "saving"... nowadays everyone is just "hoarding".

by drcode 9y ago

eropple 9y ago
People don't call the saving of stable, non-speculative currencies "hoarding".
- graedus 9y ago
  Yes they do. Here's a Bloomberg headline I just ran across today: "Rich Retirees Are Hoarding Cash Out of Fear" [0] The word hoarding is often used to cast ordinary and prudent saving of stable, non-speculative currencies like US Dollars and Euros in a negative light. Economists and central bankers often want the inflation rate to be higher - to reduce debt loads, among other reasons - so they want people (other people, of course) to stop saving so much and start spending more. [0] https://www.bloomberg.com/news/articles/2017-05-16/rich-retirees-are-hoarding-cash-out-of-fear https://www.bloomberg.com/news/articles/2017-05-16/rich-reti... edit: grammar
  - eropple 9y ago
    Huh. I stand corrected. I've never seen that before. Mea culpa.
  - zzalpha 9y ago
    Well, there's an efficiency argument related to holding onto cash instead of investing. That is, holding onto large quantities of cash and not investing means losing out on returns. The only time that's rational is if there's significant market risk, or if you get better returns due to appreciation in currency value (which amounts to treating money like a commodity/investment). So, I'd argue that holding onto large quantities of money in lieu of allowing it to circulate due to fears does qualify as "hoarding", insofar as the money could be put to better, more productive use while the person holding onto the cash may be losing out on potential upside. The term is particularly apt when there are concerns of a deflationary spiral, as cash hoarding truly does become a problem in that circumstance.
zzalpha 9y ago
Those are different things. Saving is setting aside money for future use. Hoarding is setting aside money expecting the value of money to increase, thus treating it like an investment instrument, which is not the purpose of money. If Bitcoin is a commodity then "hoarding" is normal. If Bitcoin is money, it's not.
SilasX 9y ago
I wish there was something called "non trivial interest rates on saving" :-p
synicalx 9y ago
Saving implies you can actually do/buy something with what you've saved.

I miss the olden times when there used to be something called "saving"... nowadays everyone is just "hoarding".

by drcode 9y ago

I miss the olden times when there used to be something called "saving"... nowadays everyone is just "hoarding".

eropple 9y ago

People don't call the saving of stable, non-speculative currencies "hoarding".

graedus 9y ago
Yes they do. Here's a Bloomberg headline I just ran across today: "Rich Retirees Are Hoarding Cash Out of Fear" [0] The word hoarding is often used to cast ordinary and prudent saving of stable, non-speculative currencies like US Dollars and Euros in a negative light. Economists and central bankers often want the inflation rate to be higher - to reduce debt loads, among other reasons - so they want people (other people, of course) to stop saving so much and start spending more. [0] https://www.bloomberg.com/news/articles/2017-05-16/rich-retirees-are-hoarding-cash-out-of-fear https://www.bloomberg.com/news/articles/2017-05-16/rich-reti... edit: grammar
- eropple 9y ago
  Huh. I stand corrected. I've never seen that before. Mea culpa.
- zzalpha 9y ago
  Well, there's an efficiency argument related to holding onto cash instead of investing. That is, holding onto large quantities of cash and not investing means losing out on returns. The only time that's rational is if there's significant market risk, or if you get better returns due to appreciation in currency value (which amounts to treating money like a commodity/investment). So, I'd argue that holding onto large quantities of money in lieu of allowing it to circulate due to fears does qualify as "hoarding", insofar as the money could be put to better, more productive use while the person holding onto the cash may be losing out on potential upside. The term is particularly apt when there are concerns of a deflationary spiral, as cash hoarding truly does become a problem in that circumstance.

zzalpha 9y ago

Those are different things. Saving is setting aside money for future use. Hoarding is setting aside money expecting the value of money to increase, thus treating it like an investment instrument, which is not the purpose of money. If Bitcoin is a commodity then "hoarding" is normal. If Bitcoin is money, it's not.

SilasX 9y ago

I wish there was something called "non trivial interest rates on saving" :-p

synicalx 9y ago

Saving implies you can actually do/buy something with what you've saved.