> It's the savings that are fueling cheap loans What? I don't think that's at all true. > the market collectively deciding that depositing money and lending i

> It's the savings that are fueling cheap loans What? I don't think that's at all true. > the market collectively deciding that depositing money and lending it out is the best use of their money I don't think anyone thinks that earning bank interest is the best use of their money. Interest is basically 0. In some countries you have to pay to hold deposits in banks. > those savings have to go somewhere They actually don't. We could legislate 100% reserve requirements for example, instead of the 0% we have today. > Before 2008 those savings were flooding into mortgage bonds I think you're misunderstand how banks operate these days. Banks no longer lend out proportional to the deposits they get, banks lend out as much as they can without any limit. The amount people are saving is literally irrelevant at this point. It was already basically irrelevant in 2000. https://www.newyorkfed.org/research/epr/02v08n1/0205benn/0205benn.html https://www.newyorkfed.org/research/epr/02v08n1/0205benn/020...