The Noam Elimelech explains this Gemara like so: The root of money is from the fire of the Holy Throne of HaShem, if one uses it for tzedakah and with great kindness and awareness, then it brings great pleasure before HaShem on His Throne. On the other hand, if one uses the money to one's own ends, then it burns like fire, eradicating the intellect of such a person.
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