Re:The rich are hoarding economic growth
by chrisgd on Sunday August 20, 2017 @10:50PM
(#15061585)
Loans create deposits. Banks are not constrained to make loans based on how much is on deposit.
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Re:The rich are hoarding economic growth
by WalterBright on Sunday August 20, 2017 @11:05PM
(#15061636)
> Loans create deposits
Initially, yes. But people borrow money in order to spend it, not leave it on deposit.
> not constrained
That's right, just as airlines are not constrained to keep their airplanes flying payloads. But if they don't, they are not making money.
Every time you step in a bank, they try to sell you a loan for a reason.