02-11-2009, 02:59 PM
<!--quoteo(post=17309:date=Feb 11 2009, 12:17 PM:name=rok)-->QUOTE (rok @ Feb 11 2009, 12:17 PM) <{POST_SNAPBACK}><!--quotec-->Actually, that isn't true about the notion that rebates that go directly into the bank and aren't spent immediately doing nothing for the economy. Money deposited in banks is multiplied many times over by banks lending that money out (the whole point of the banking system), under normal credit circumstances of course. That's banking 101.<!--QuoteEnd--><!--QuoteEEnd-->
Doesn't this also assume the banks are lending readily between each other? Something they haven't been doing much of recently?
Doesn't this also assume the banks are lending readily between each other? Something they haven't been doing much of recently?