[quote=moneymaker] On the sidelines with lots of company looks like. There’s $129 Billion in the money market I bought.[/quote]
Here comes the money on the sidelines fallacy again. When you sell assets in exchange for cash or cash equivalent there’s a party on the other side of that transaction that must get that cash or cash equivalent from somewhere. Guess where that cash you got for your assets came from. Probably something pretty close to that “sidelines” money market fund that you put it in. Net change to money on the sidelines almost zero minus some transaction costs.
There is one major exception to that. If the buying party borrowed the money from a bank that created it out of thin air using fiat banking then it is possible that the net change for the apparent money on the sidelines goes up. Of course there is a balance sheet liability entry at a bank that balances that increase out.
Money on the sidelines is a myth, there will always be money on the sidelines by definition. For every party getting off the sidelines and buying assets there is another party selling assets and getting on the sidelines.
