Irony

On my way home today, I had a very interesting thought. One of the things causing economic chaos these days is the collapse of banks, uncertainty of credit and dangerous balance sheets. Interestingly, the way out of this economic slow down might not necessarily be to spend money. If we saved money instead, there'd be deposits, deposits would be stable and reliable and thus lendable. Funds that banks feel comfortable lending out would then free up the credit market and spur spending again. Then everything keeps chugging along.
I'm sure the spending part is important too, but we already have a lot of loans on the books.