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If you buy a house, that money isn't in a sink. It goes to the person that sold it to you. And they spend it on something else. Similar situation for "illiquid
by missedthecue 5y ago
If you buy a house, that money isn't in a sink. It goes to the person that sold it to you. And they spend it on something else.
Similar situation for "illiquid nonproductive assets". Whoever sells them gets the cash.
If it sits in a bank account, the bank loans it out, where the borrowers spend it again.
Bezos isn't keeping $200 billion out of circulation. He owns 10% of a $2 trillion company.