"Bernie is the only person out there who I think is talking at all about both fiscal stimulation and banking rules that will get the banks to begin to generate lending again as opposed to speculation."
"Asher Edelman, an investor who was one of the inspirations for the nefarious corporate raider Gordon Gekko in the movie "Wall Street," made a surprise presidential endorsement on CNBC's Fast Money last week: He came out swinging for democrat Bernie Sanders.
Most interesting was Edelman's reason for supporting Sanders (emphasis ours):
'Well, I think it's quite simple again. If you look at something called velocity of money, you guys know what that is I presume, that means how much gets spent and turns around. When you have the top 1% getting money, they spend 5-10% of what they earn. When you have the lower end of the economy getting money, they spend 100-110% of what they earn.
As you've had a transfer of wealth to the top and a transfer of income to the top, you have a shrinking consumer base basically, and you have a shrinking velocity of money. Bernie is the only person out there who I think is talking at all about both fiscal stimulation and banking rules that will get the banks to begin to generate lending again as opposed to speculation.'
Velocity of money is a central concept in macroeconomics. Velocity represents how often the average dollar is used in a transaction in a given period of time. A higher velocity of money implies more economic activity going on."
The real life Gordon Gekko is supporting Bernie Sanders because of a basic economic principle