What Happens If Domestic Investment Exceeds Domestic Savings?

Explain please.
Thanks!

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2 Responses to What Happens If Domestic Investment Exceeds Domestic Savings?

  1. foolcow says:
    November 19, 2009 at 11:29 pm

    This can only happen when a central bank keeps interest rates artificially low.
    Businesses are misled into starting projects which cannot be profitable in the long run (since the real resources aren’t available), and then eventually have to be abandoned, which involves laying-off workers and restructuring.

  2. mac says:
    November 20, 2009 at 5:45 am

    greed has triumphed over fear. investments means folks have confident they could make money, savings means folks are worried about the future