CultureCitizen
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- Jun 1, 2013
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- #21
'Sit in the bank.'The rich can afford a few more percentage. Most of that percent would sit in the bank anyways.
Do you think that a bank actually takes that money and places it in a vault? I find it laughable that so many seem to think that money simply stays unproductive if it is not spent. That is not how our system works. the only money that is truly unproductive is that money sitting in your pocket.
I am amazed at how people assume that the money deposited in the bank will automatically be used in some productive investmend and increase its net worth.
No FA_Q2, it will not be locked in a vault, instead it will be invested in a subprime mortgage which was rated as AAA or into a shale oil company that has to drill at full speed to minimize its losses... then the bank will ask to be bailed out.
Yes , there are other options, it may get invested into a foreign company , which will create goods that will later be imported by the USA .
In any case, nothing guarantees that money will actually beneffit the economy of the USA... the bankers ,sure, they will get proffit and tax breaks... so be it.