3 ms·
Yes, just trying to point out the flaw in the "velocity of money" idea as it relates to debt. Multiple layers of lending on a single dollar is building a house
by tastyfreeze 6y ago
Yes, just trying to point out the flaw in the "velocity of money" idea as it relates to debt.
Multiple layers of lending on a single dollar is building a house of cards. When everything works out you get a nice house. When one of the legs fails the whole house comes tumbling down. This is not a good way to build an economy.
- kube-system 6y agoThe bright side is that it only takes $10 of stimulus to fix that potential $30 economic disaster.... if you give it to the right person.
- spurgu 6y agoBig IF there. :)
- spurgu 6y agoIndeed, wholeheartedly agree. Short term gains is such an attractive proposition though...