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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: KLP who wrote (377464)	8/10/2010 6:22:49 AM
From: Elroy	Read Replies (2) \| Respond to of 793927

The two financial types here keep talking about the Velocity of Money.....Here's a couple of things I found that might shed some light on your thinking (mine too) yada yada yada Because the velocity of money has plummeted. I'm not certain on the definition of velocity of money, but again intuitively it would seem taking $10 out of a well off person's bank account and giving it to a not so well off person (who will spend it within the month) would speed up the velocity of money. Again, I'm not sure on the larger economic affect, but it seems having a poor person spend $10 on food is better for the general economy than having the same $10 sit in the bank account of a better off person.