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Strategies & Market Trends : Booms, Busts, and Recoveries
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To: Gary H who wrote (15398)2/22/2002 10:02:07 AM
From: Ilaine  Read Replies (1) of 74559
 
Savings=investment. Unless you put the money under your mattress. When you put it in the bank, the bank lends it out. The difference between what the borrower pays as interest to the bank and what the bank takes is paid to you as interest on your deposit.

Where did you think interest on deposits came from, anyway?

You can put it in gold if you want to, but it won't be available for capital formation in that case. It's just dead.
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