ABSTRACT
The old saying is that it takes money to make money. Indeed to make anything by modern production methods requires ample funds. So being in a position to dole out funds on any terms gives the holders of the funds great economic power and influence. What gets produced and what does not is in large measure determined by the ability or inability to finance their production. So who holds loanable funds, and their ways of deciding who gets them, has tremendous economic importance. It is not hard to explain why fine office buildings and luxury apartments get built but not low-cost housing. Those with loanable funds do not gain or gain as much by financing the latter.
