3 ms·

>hoard their money I'm not sure about you, but I've always called that 'saving'

jacquesm 11y ago
Yes, but you're saving to accumulate an amount with some particular purpose, usually not because your money will theoretically buy you more tomorrow (likely it will buy you less in the normal inflationary version of the world). Hoarding is something like but not quite exactly the same as saving.
- shawabawa3 11y ago
  > usually not because your money will theoretically buy you more tomorrow Which is a ridiculous argument because it's always true (or at least has been for 100+ years). It's very easy to find safe investments with greater returns than inflation and it always has been, has it caused a hoarding problem?
  - jacquesm 11y ago
    > It's very easy to find safe investments with greater returns than inflation and it always has been, has it caused a hoarding problem? Great returns come with great risk.
    - shawabawa3 11y ago
      Yes, but 0.1% over inflation returns come with virtually no risk
brc 11y ago
Right, unless you're stashing currency into your mattress or burying gold bars in the yard, your money hasn't gone anywhere. It's in the bank, which is the lending it out to those who have a a better user for it. Hoarding is a an invented scary word for saving. Saving is the underpinning of all investment, and investment is the key to productivity gains. Productivity gains are the key to increased living standards. To then turn that upside down and say that saving makes things worse is only possible by using the word 'hoarding' as it conjures images of a fleeing deposed lord burying the family treasure in a field. In reality, returning economies to health requires a stable or increasing rate of savings.
- wintersFright 11y ago
  agree but would add even the mattress and metal hoarders serve a purpose in signalling that the offer of risk vs reward in current interest rates needs adjustment. This is all distorted however since the central banks keep their hand on rates and decide what the market should accept for the risk lending savings to the bank (depositing).
- mauricemir 11y ago
  Its more a problem in country's with week banking systems where the population do not trust the banks - look at the outflows of cash from Greece.
mauricemir 11y ago
The problem is that a Fetishistic obsession with 100% cash savings instead of actually investing in something is not a good thing for the economy. It also leads to bizarre outcomes where foolish pensioners invest in exotic and risky cash like instrument's like PIBS instead of 100+ year old investment trusts.

Yes, but you're saving to accumulate an amount with some particular purpose, usually not because your money will theoretically buy you more tomorrow (likely it will buy you less in the normal inflationary version of the world). Hoarding is something like but not quite exactly the same as saving.

shawabawa3 11y ago
> usually not because your money will theoretically buy you more tomorrow Which is a ridiculous argument because it's always true (or at least has been for 100+ years). It's very easy to find safe investments with greater returns than inflation and it always has been, has it caused a hoarding problem?
- jacquesm 11y ago
  > It's very easy to find safe investments with greater returns than inflation and it always has been, has it caused a hoarding problem? Great returns come with great risk.
  - shawabawa3 11y ago
    Yes, but 0.1% over inflation returns come with virtually no risk

brc 11y ago

Right, unless you're stashing currency into your mattress or burying gold bars in the yard, your money hasn't gone anywhere. It's in the bank, which is the lending it out to those who have a a better user for it. Hoarding is a an invented scary word for saving. Saving is the underpinning of all investment, and investment is the key to productivity gains. Productivity gains are the key to increased living standards. To then turn that upside down and say that saving makes things worse is only possible by using the word 'hoarding' as it conjures images of a fleeing deposed lord burying the family treasure in a field. In reality, returning economies to health requires a stable or increasing rate of savings.

wintersFright 11y ago
agree but would add even the mattress and metal hoarders serve a purpose in signalling that the offer of risk vs reward in current interest rates needs adjustment. This is all distorted however since the central banks keep their hand on rates and decide what the market should accept for the risk lending savings to the bank (depositing).
mauricemir 11y ago
Its more a problem in country's with week banking systems where the population do not trust the banks - look at the outflows of cash from Greece.

mauricemir 11y ago

The problem is that a Fetishistic obsession with 100% cash savings instead of actually investing in something is not a good thing for the economy. It also leads to bizarre outcomes where foolish pensioners invest in exotic and risky cash like instrument's like PIBS instead of 100+ year old investment trusts.