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A comment on ARM founder says Softbank deal is 'sad day' for UK tech. Parent comment

Re:ARM founder says Softbank deal is 'sad day' for UK tech by toyg on Tuesday July 19, 2016 @06:56AM (#12120989)
No, these savings are just offsetting shrinking retirement and welfare provisions from the State. They do very little for investment (pension funds are naturally conservative) and nothing for immediate consumption, grinding the overall system slowly to a halt. Japan historically has a similar problem due to cultural elements, Europe is getting there because of prolonged austerity "reforms".
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Re:ARM founder says Softbank deal is 'sad day' for UK tech by derriz on Tuesday July 19, 2016 @09:04AM (#12121464)
Where do you imagine the saved money goes?

In a modern economy "savings" equals investment. Even using a bank deposit account transforms one persons savings into another's business loan or mortgage.

This seems to be a widely held misconception - that savings are economically inert - a bit like a squirrel's nut hoard.

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Re:ARM founder says Softbank deal is 'sad day' for UK tech by toyg on Tuesday July 19, 2016 @06:49PM (#12125546)
Nah, between "firewalls" and rock-bottom central bank rates, money invested (or rather multiplied, through fractional etc etc) by banks today is not coming from savings. Which is why returns on savings are basically non-existent; but it's the only wealth accumulation available to everyone, and in times of "austere" frugality with uncertain job prospects, people keep accumulating them anyway.
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Re:ARM founder says Softbank deal is 'sad day' for UK tech by xenadu02 on Tuesday July 19, 2016 @11:39AM (#12122365)
The massive accumulation of capital to the top 1% means competition for investment opportunities... aka capital is really cheap as investors hook up the money funnel to anything that smells like yield. That encourages malinvestment.

Businesses don't need loans when they don't have customers with money to spend.

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Re:ARM founder says Softbank deal is 'sad day' for UK tech by ricksplat on Tuesday July 19, 2016 @09:36AM (#12121638)
> In a modern economy "savings" equals investment

This, is a widely held misconception. A bank is no longer allowed to re-invest more than a small proportion of it's customers' savings.

https://en.wikipedia.org/wiki/Fractional-reserve_banking#Res...

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