Imagine you're a bank. The corporate sector isn't interested in borrowing, so you can't lend to it. So where do you go Well, mortgages. They pay a reasonable rate. They're seen as a safe investment. Load up on mortgage-backed securities.
Imagine you're a bank. The corporate sector isn't interested in borrowing, so you can't lend to it. So where do you go Well, mortgages. They pay a reasonable rate. They're seen as a safe investment. Load up on mortgage-backed securities.
The surplus creates an environment where there's a tremendous amount of saving being freed up for private investment every time the government pays down its debt, that frees funds to flow into private investments. That has created this strong growth economy that we have.
© 2020 Inspirational Stories
© 2020 Inspirational Stories