Rich people have nowhere to put their money. This is a serious problem.
These facts are being treated as grand mysteries by most commentators. But may I invoke Occam’s Razor and suggest the simplest explanation is the right one: There’s not enough stuff going on in the economy that’s worth investing in. As the amount of money in the financial markets grows compared to the amount of worthwhile investments, it’s like having more and more rich people standing on a shrinking platform. Of course financial markets become more volatile, and begin panicking in response to what would have seemed, in earlier decades, like no big deal. I don’t think it’s a coincidence that … Continue reading Rich people have nowhere to put their money. This is a serious problem.
