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Not sure if this is a joke or not, but that's actually what's happening right now - many large firms are literally just stowing cash: https://www.marketwatch.co
by mo1ok 8y ago
Not sure if this is a joke or not, but that's actually what's happening right now - many large firms are literally just stowing cash: https://www.marketwatch.com/story/these-are-the-5-us-companies-with-the-biggest-overseas-cash-piles-2017-04-26 https://www.marketwatch.com/story/these-are-the-5-us-compani...
- isostatic 8y agoI suspect the argument is that when $BIGCORP puts $1t in the bank, the bank gives out $900b as new loans
- mo1ok 8y agoAh, I see. Good point.
- eli_gottlieb 8y agoI think investment is actually a measured variable.
- madhadron 8y agoBut that's not how money works. Banks don't loan money they have on deposit. They loan money they create from thin air, and are required to have a certain amount of deposits to potentially cover that if their exchanges with another bank become too imbalanced. That's what's called "leverage."