> Leading to a [...] severe demand for cash.
Callooh! Callay! Something to sponge up the Global Savings Glut!
Callooh! Callay! Something to sponge up the Global Savings Glut!
There's lots of capital with nowhere to go, hence bonkers real estate prices, wacky startups getting funded, overpriced assets and low bond yields.
There's also of people without much capital who want to do things like buy cars and houses or start businesses.
These things aren't mutually exclusive. The capital is largely held by a small number of people. Most people don't have any or not very much.
Most capital can be readily exchanged for cash, hence it can be referring to as "liquid assets".
Where wealth comes from is an interesting question, but not especially relevant to the topic at hand.
This is completely relevant to the Minsky moment, because it is the illusion of wealth created by inflated asset values that leads people to take excess risks.