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Excel_Wizard | 6 years ago

a savings glut is the thing that Krugman has suggested, and is the thing which makes sense to me.

Which stinks because I hate Krugman.

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nathan_compton|6 years ago

Can you elaborate? Intuitively, no one I know has a "savings glut." If anything, people in my generation are saddled with debt.

nopriorarrests|6 years ago

Someone being in debt means that someone has an obligation on said debt, so "savings glut" means "debt glut",tautologically.

Excel_Wizard|6 years ago

There is more money saved up than there are good productive investments available for it, in comparison to the past.

This correlates with a few things: - Inflation of the value of investment assets (high P/E ratios) - Low interest rates on bonds - Secular stagnation

Mikeb85|6 years ago

The rich, banks and corporations have too much cash on hand and not enough to invest in.