> The idea people seem to have is that the Fed will step in.
See. People can learn.
Cash reserves are only useful if things are allowed to fail. Then, the people with cash can buy the remnants and put the failed stuff to good use.
If, however, everyone who overextended themselves are always going to get bailed out, holding cash is for suckers--better to run up the credit just like everybody else.
See. People can learn.
Cash reserves are only useful if things are allowed to fail. Then, the people with cash can buy the remnants and put the failed stuff to good use.
If, however, everyone who overextended themselves are always going to get bailed out, holding cash is for suckers--better to run up the credit just like everybody else.