saving and investment so the idea of a world a wash with cheap cash is false
other economists point out that the current account deficits in the USA and other countries amounted to much less than 2 per cent of the money flow , so surely would have only a marginal affect. the savings glut theory also becomes harder to sustain when applied to Europe Germany for instance. in the years leading up to the 2008 crists , was saving-rich. the saving glut theory would imply that Germany which seem highly unlikely
a banking glut ?
Princeton University economics professor Hyun Song Shin has argued that the floods of speculative money chasing after mortgage securities came not from saving glut