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by pydry
1775 days ago
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All this speculation and capital going a little crazy searching for yield are side effects of an overabundance of capital. We are seeing this now thanks to wealth inequality brought on by capital being given preferential tax status to labor for decades and stagnant wage growth again for decades. This wasnt a problem following WW2 - wage growth was high and given vastly preferential tax treatment to labor. |
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The stock market is where savers have been forced to. Pensions included. ZIRP/negative real rates have consequences. There "isn't too much capital". It's being misallocated due to misguided policy. It will get worse.
You need to start thinking in second and third order effects.