Class was in session today on Twitter as NewsBusters’ Noel Sheppard and Huffington Post Washington bureau chief Ryan Grim debated the concept of “unused capital,” launching from a post by CNN’s Hillary Rosen.
No, I am a capitalist but Romney's policies rig the game . RT @christophil: Class warfare queen>RT @hilaryr http://t.co/cqRWiKj2
— Hilary Rosen (@hilaryr) July 14, 2012
@hilaryr You're a capitalist? Cool. Explain how raising taxes stimulates the economy?
— Noel Sheppard (@NoelSheppard) July 14, 2012
@NoelSheppard @hilaryr It drains stagnant pools of capital and pumps it into the economy instead of letting it fester and evaporate.
— Ryan Grim (@ryangrim) July 14, 2012
Stagnant pools of festering capital? Economics is usually so boring, but you make it fun. Tell us more!
@ryangrim Stagnant pools of capital? I assume you're joking. @ryangrim
— Noel Sheppard (@NoelSheppard) July 14, 2012
@NoelSheppard Get a clue kid. Unused capital is like unused labor. If it's not expended it's wasted, gone. Got it? cc @hilaryr
— Ryan Grim (@ryangrim) July 14, 2012
Look, no one wants to step into a pool of festering capital. Where should we be looking for these swampy areas?
.@ryangrim So tell me Mr. HuffPo congressional correspondent, what exactly is "unused capital" and where does it reside?
— Noel Sheppard (@NoelSheppard) July 14, 2012
@NoelSheppard it sits in currency in Swiss bank accounts, in the caymans, etc, looking for a bubble to inflate
— Ryan Grim (@ryangrim) July 14, 2012
Hmm, where have we heard about Swiss bank accounts recently?
.@ryangrim Not true at all. Care to try again Mr. HuffPo congressional correspondent? Or should I call you "kid"?
— Noel Sheppard (@NoelSheppard) July 14, 2012
@NoelSheppard go for it. But if it's not being spent or invested, it's being wasted. Pretty simple.
— Ryan Grim (@ryangrim) July 14, 2012
.@ryangrim Not true. Most "idle" cash sits in bank accounts. That gives banks money to lend at a huge multiple. Good for the economy.
— Noel Sheppard (@NoelSheppard) July 14, 2012
Looks like it’s time to show the other guy he’s not facing reality — by invoking a movie.
@NoelSheppard I liked It's A Wondrful Life too but that's not today's banking
— Ryan Grim (@ryangrim) July 14, 2012
.@ryangrim Other "idle" cash sits in treasury bills which finances the debt and keeps interest rates down.
— Noel Sheppard (@NoelSheppard) July 14, 2012
.@ryangrim As such, there really is no such thing as "unused capital" because companies don't stuff cash in mattresses.
— Noel Sheppard (@NoelSheppard) July 14, 2012
This fight looks like it might be drawing a small crowd.
@NoelSheppard @ryangrim Do they not teach economics anymore? Do ppl think money just sits in a bank? Why do they think banks pay interest?
— Noble Prize Tweeter (@portdauphin) July 14, 2012
@NoelSheppard @ryangrim "Idle cash", huh? Some people call that "savings." Gov't calls it a potential revenue source.
— Soquel by the Creek (@SoquelCreek) July 14, 2012
So what do banks do with the money if not stuff it in mattresses?
@NoelSheppard what do the banks do with it? Build highways? No, they create wacky financial products and speculative, useless bubbles
— Ryan Grim (@ryangrim) July 14, 2012
@ryangrim @noelsheppard Build highways? I thought that's what the stimulus was supposed to do? Hey, just what did the stimulus do?
— Black Labrador (@AntiqueSully) July 14, 2012
.@ryangrim As for highways, banks do finance construction loans. Do you have any actual knowledge of finance at all?
— Noel Sheppard (@NoelSheppard) July 14, 2012
.@ryangrim I have 32 years in the financial services industry including banking, securities and insurance. You?
— Noel Sheppard (@NoelSheppard) July 14, 2012
@NoelSheppard Look, you and ur buds in global finance clearly have things under control. Just let us know next time u need a bailout
— Ryan Grim (@ryangrim) July 14, 2012
We get the feeling someone’s waiting for the bell to end this round.
.@ryangrim What does that have to do with your claim about "unused capital"? Now UR just stooping to Dem talking points!
— Noel Sheppard (@NoelSheppard) July 14, 2012
@NoelSheppard Hey, at least Ryan Grim's book is doing well, ranked at #524,502 by Amazon (sarcastic tone). Paper used is unused capital!
— Dan Wagner (@DanWagnerSTL) July 14, 2012