Quoting the Crisis29/09/2009
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This “multiplier effect” will only work if American families and businesses are willing to take on yet more debt: “a dollar of capital in a bank can actually result in eight or ten dollars of loans”.
So the only way the roughly US$1 trillion of money that the Federal Reserve has injected into the banks will result in additional spending is if American families and businesses take out another US$8-10 trillion in loans.
„It’s Hard Being a Bear (Part Five): Rescued? | Steve Keen’s Debtwatch
Quote posted at 19:03
