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>Dollars stockpiled in some account are not doing anyone any good. Why is it that Keynesians believe that money just gets stuffed under a mattress or stockpile
by icelancer 12y ago
>Dollars stockpiled in some account are not doing anyone any good.
Why is it that Keynesians believe that money just gets stuffed under a mattress or stockpiled somewhere? It is loaned out at X% interest rates to people who need present-day liquidity to fuel growth. What do you think the VC industry is based on, Keynesian economics?
- Spooky23 12y agoThe reality today is that most banks dump deposits into fixed income securities, the vast majority of which in 2014 are Treasury instruments. VC investments are a completely different universe. None of the $7 trillion in deposit balance is going to a VC. Right now, smaller businesses are starved of loan capital, and if you don't offer the high growth rates that VCs need to succeed, it is difficult to get loans.