^^ this
The world is not really any poorer than it was yesterday, or the day before. There's still the same amount of "stuff" owned.
Problem is, everyone's sitting on what they've got, rather than merrily selling and buying and lending it to each other.
When this happens, we're all out of a job, and have to grow cress on our windowledges for food.
I can't start my new exciting business that will provide professional kitten-shopping services unless the banks will lend me some money, and people feel happy enough about the future that a kitten-shop today seems like a better option than saving that money to buy canned food, shacks in the woods and weaponry.
Here ends the very poorly informed economics lesson.
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prince-igor si tacuisses, philosophus mansisses, Wed 8 Oct 2008, 11:09,
Reply)