> Another economical fallacy. When you put money in the bank, it's not standing there doing nothing. Savings are invested, loaned, used to create additional val

> Another economical fallacy. When you put money in the bank, it's not standing there doing nothing. Savings are invested, loaned, used to create additional value. That's why banks want your money. If not, it would be a simple cost for them with no value to have it there, and they would charge you to keep your money instead of rewarding you for it. This really isn't true especially at the moment. There is plenty of money at the moment looking for investment opportunities at the moment. Interest rates are near zero (suggesting that is the return expected by banks). Even when this is not the case unless there are 100% reserve requirements on banks the banking system is not limited to lend only the the savings that they receive but can create their own money and it literally costs them nothing to lend money. The just create an asset and a matching liability and you have your loan.