Hacker News Reader

Nah, between "firewalls" and rock-bottom central bank rates, money invested (or rather multiplied, through fractional etc etc) by banks today is not coming from savings. Which is why returns on savings are basically non-existent; but it's the only wealth accumulation available to everyone, and in times of "austere" frugality with uncertain job prospects, people keep accumulating them anyway.

The massive accumulation of capital to the top 1% means competition for investment opportunities... aka capital is really cheap as investors hook up the money funnel to anything that smells like yield. That encourages malinvestment.

Businesses don't need loans when they don't have customers with money to spend.

> In a modern economy "savings" equals investment

This, is a widely held misconception. A bank is no longer allowed to re-invest more than a small proportion of it's customers' savings.

https://en.wikipedia.org/wiki/Fractional-reserve_banking#Res...