Re:The Ultimate Guide to Inflation
by throwawayboise on Monday May 10, 2021 @12:16AM
(#27102627)
We saw what happened in 2008 when the loans went to unsophisticated, underqualified borrowers.
2008 (or rather, the lead-in to 2008) was a different case.
In that case the lenders were the ones who were the problem, and the borrowers were indeed using the money as disposable income (well, at least, to buy a home and other consumer goods on credit).
Whereas today the money goes from the printers to the rich people - not the common folk.
> unsophisticated, underqualified
Like Lehman Brothers
Not if the increase in money supply goes from the banks to the already wealthy (as cheap loans), which don't use the extra money to consume, but to invest, buy land, and fund small-competition-crushing rent-seeking endeavours.
Then the money supply increases, consumer goods remain more or less the same price, but some stuff like rent goes up.