(my two cents) #Pensions are claims on future output, and funding them doesn't raise capacity by itself. Moving household wealth from deposits into equities mostly buys existing assets on secondary markets - #ApolloGlobal

Funded pensions don't create real resources. Transitioning from a Pay-As-You-Go public pension system backed by the Govt's currency-issuing power to a funded, market-dependent model shifts systemic risks (market crashes, inflation shocks, asset bubbles) onto individual households - #ApolloGlobal

(my two cents)
Channeling #German ’s #savings out of safe bank deposits and into risk assets (private equity, global equities, and alternative credit via private markets) does not magically generate domestic #productive capacity, chart #ApolloGlobal

His core message is: #Germany needs a lot of investment (AI, infrastructure, defense, energy), but its pool of domestic institutional capital is tiny - Mr. van Steenis’ narrative relies on the orthodox loanable funds theory, chart #ApolloGlobal

Investment does not have to wait for prior saving. Credit creation finances investment, and the resulting expenditure generates income from which saving subsequently emerges. This reverses the causality embedded in Slok's #apolloglobal framework. And there is a very #Keynesian irony here:

That is essentially a loanable-funds story, even though Torsten Sløk dresses it up in terms of modern financial markets, chart #apolloglobal