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Oh I see. Sorry I took "This free money" to mean the money flowing into finance, largely as a result of regulatory changes IIRC, rather than direct govt. spendi
by iguy 6y ago
Oh I see. Sorry I took "This free money" to mean the money flowing into finance, largely as a result of regulatory changes IIRC, rather than direct govt. spending. But it's possible I've lost the thread of what's being argued here.
- brandmeyer 6y ago> I took "This free money" to mean the money flowing into finance Yeah, that's a different argument. Its arguing that low-cost finance is crowding out savings. However, in this case if you look at the savings rate, its still a little too high relative to historical averages. Of course, 2020 is nuking all of the statistics. But prior to the COVID shock, both gross and personal savings were high and climbing despite constantly juicing the markets with cheap finance. https://fred.stlouisfed.org/series/PSAVERT https://fred.stlouisfed.org/series/PSAVERT https://fred.stlouisfed.org/series/GSAVE https://fred.stlouisfed.org/series/GSAVE