Actually, 2008 was supposed to be the end of the economic system. It should have resulted in a great depression and a massive increase in political polarization and violence. Yet for some strange reason, we are merely limping away from it and that event is becoming a faint memory in another decade.
People didn't take on massive loans due to interest rates, banks were handing out massive loans and this forced them to lower interest rates.
People save first, then the money must be invested, either directly in stocks or indirectly through loans where the borrower invests in his company.
If there is a flood of savings, then there will be a flood of loans as well.
People didn't take on massive loans due to interest rates, banks were handing out massive loans and this forced them to lower interest rates.
People save first, then the money must be invested, either directly in stocks or indirectly through loans where the borrower invests in his company.
If there is a flood of savings, then there will be a flood of loans as well.