UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: jkirk99 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35254  
Subject: Re: Anti-Deflation Question Date: 5/9/2003 1:07 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1


The classic answer is that by buying your bonds they have put more money into the economy. I suppose that's true because even if you just leave it in your bank account the bank will go out and loan more money to people. But like you, I wonder if go out and buy another investment, particularly another government bond, how that puts money into the economy. I guess not matter what you do, the money that bought the bond winds up in some bank account and then the bank will loan more money.

I think we are going into deflation right now, but they should be able to pull us out of it.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement