You have $10,000 in the bank and now it is worth more. That is GOOD for the economy. The saver can go to the store and now buy 2 cars instead of one. This is the only reason I am interested in cryptocurrencies, they are like full reserve banking and a gold standard tied into one. Fuck the banks, fuck the people who live on credit, and double fuck the government workers that spend even though the credit limit is hit.
EVERY recession and depression was caused by banks, loans, and or fractional-reserve lending.
http://en.wikipedia.org/wiki/Panic_of_1857You have $10,000 in the bank, so you sit on it because you know it'll grow. So does your neighbor. And the guy down the street. Everyone is sitting on their money waiting for it to grow. No one is spending. That car dealership you're talking about now has to lay off more employees because there isn't enough business. So does the baker. The newspaper hits: "Everyone is being laid off!". With a poor job outlook, people save more for the rough times ahead. Rinse/repeat.