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Don't people who argue that stock markets are good thing say that money in a stock portfolio is not 'dead to the economy'? And don't banks lend money out based

by vkou 2y ago

Don't people who argue that stock markets are good thing say that money in a stock portfolio is not 'dead to the economy'? And don't banks lend money out based on the size of their customers' savings accounts? Anything short of money being stuffed in his mattress keeps it active in the economy.

blitzar 2y ago
If (litteraly) everyone parked all their money in Microsoft stock and spent nothing in the real economy the system would collapse. Economically we all stand on the shoulders of consumption.
- vkou 2y ago
  That's because the money would be going to the wrong part of the economy.