General Discussion
In reply to the discussion: So really ... what is wrong with redistributing wealth? [View all]CJCRANE
(18,184 posts)and we'd all be living in the dark ages again. So the banks and corporations were bailed out with taxpayers' cash.
So the cash they're sitting on is basically our cash. But now they've got it they don't want to invest it, so we have to come up with some other way of stimulating the economy. And that's where we are right now.
But there is still a huge demand hole in the economy compared to before the crash. If the corporations release the cash sensibly and invest in jobs and infrastructure, that shouldn't cause inflation, they'll just be filling the hole that was already there IMO.
I'm not an expert though, however US treasury bonds are considered a safe haven by global investors who have more faith in the American economy than they do in Europe's for example, which has followed the austerity path rather than the stimulus path.