Hacker News Reader

Consumption drives investment. There's always demand.

Savings fund investment. The more savings there are, the cheaper it is to find funds for investing in a project. The cheaper the capital expenditure, the easier it is to turn a profit.

Or are you talking about the paradox of thrift?

View on HN

The first thing you do before investing in a new market is asking the question: "What's the return on this? Will anyone buy the things I'm selling? Are the margins positive?"

Having a lot of money searching for an investment won't do you any good when your widget factories don't have customers. Yes, borrowing money to build the factory will be cheap - but you still expect the factory to produce a return on your investment!

Reply on news.ycombinator.com