Monday, May 16, 2011

Financial bubbles aplenty

 "there are too few good investment opportunities in the world of real goods and services"
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Another way of saying this is that too much money goes to the top; too much demand for financial assets, not enough demand for actual 'stuff'.

The Republican mantra is that low taxes are good for capital formation; what they neglect to acknowledge is that you can have *too much* capital formation.

My tomato plants need water, but submerging them is obviously not a good idea.

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