Some Rich Americans Are Getting Stimulus ‘Checks’ Averaging $1.7M

Post by bawana » Sat, Apr 18, 2020, 2:14 AM UTC

briandear wrote: post #80

bawana wrote: post #48

Earlier quoted context omitted.

Unfortunately, when wealthy people get money they do not spend it on goods and services that employ people and drive the economY. Rather, the invest it in the financial vehicle with the highest ROI. Giving money to the rich does not trickle down to people. It goes into a holding pattern of financial engineering. That maybe why there has not been any inflation with all the quantitative easing that has been going on th…

> when wealthy people get money they do not spend it on goods and services that employ people and drive the economy That’s such a naïve statement. Those financial vehicles actually do things: provide capital for other businesses. Provide market liquidity so that capital can flow to the areas that are in demand. Grandma saving money under the mattress does a lot less than a “rich” person investing in REITs.

There are no grandmas that can save money anymore. The wealthy can afford to pay so much for housing that real working people can even afford it. The wealthy consume so much simply because they can. And there are a LOT more of them thanks to financial engineering.

Post by bawana » Sat, Apr 18, 2020, 2:21 AM UTC

WalterBright wrote: post #58

bawana wrote: post #48

Earlier quoted context omitted.

Unfortunately, when wealthy people get money they do not spend it on goods and services that employ people and drive the economY. Rather, the invest it in the financial vehicle with the highest ROI. Giving money to the rich does not trickle down to people. It goes into a holding pattern of financial engineering. That maybe why there has not been any inflation with all the quantitative easing that has been going on th…

> the invest it in the financial vehicle with the highest ROI And then where does the money go that was spent on the investment? Consider that a high ROI means the money is used for something useful. For example, investing into a financial vehicle that loans money to people buying a house. Let's say the rich person buys a yacht. The yacht construction employs a large number of people. The money goes into the pockets…

It's not about getting rid of rich people. It's about the relative flow of wealth and the behavior of rich people that makes life miserable for 'the rest of the 99%'. how about housing? The digital divide? These are negative externalities from the increasingly large numbers of extraordinarily wealthy people. Inflation will never happen no ,matter how much money the govt prints. Since when does a lower Fed rate help the common man who cannot even get a loan? Since when does the purchase of massive amounts of Tbills help the guy who doesn't have a job? These ancient economic tools date from the time before derivatives, before financial giants and their complex tools. It goes to financial vehicles which just invest it in more financial vehicles.

Re: Some Rich Americans Are Getting Stimulus ‘Checks’ Averaging $1.7M

Re: Some Rich Americans Are Getting Stimulus ‘Checks’ Averaging $1.7M