Originally posted by DodgyAgent
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Firstly, until a few years ago, banks more or less balanced lending and saving, which is sound business sense. Now they find they have lent 700 billion more than they've got in savings. Oops. The only way around this is for the balance to switch the other way. That means they need more savers. Lots of them.
Secondly, it is virtuous to save for a rainy day, and all days are rainy when you get old.
Thirdly, it is not wrong to borrow, but it is wrong to overborrow. One can understand the ignorant masses doing that, but what is diabolical, and stupid for any business, is overlending.
Lastly, the more I think about it, the more convinced I am that you are having a laugh.
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