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The article overlooks the sovereign debt. The world has a total sovereign debt of about 50 trillion. The Government bonds and their derivatives account for most

The article overlooks the sovereign debt. The world has a total sovereign debt of about 50 trillion. The Government bonds and their derivatives account for most of the difference between available capital and GDP. "Capital is no longer scarce" sounds very absurd. There will always be more people chasing limited resources and whenever less men (labor) are required for a task, the society directs that "capital" to either arts or research

tootie 11y ago
But are they really chasing a limited resource? If investors think you're product is going to be profitable, you're virtually guaranteed to get funding. The only reason chasing capital is difficult is because that's frequently a hard sell. Lots of capital doesn't mean investors are going to throw money at losing propositions.
- LyndsySimon 11y ago
  > But are they really chasing a limited resource? Of course. There is not infinite value in existence, nor is there a means of creating value from nothing. > If investors think you're product is going to be profitable, you're virtually guaranteed to get funding. Well... this is always the case. The only difference is that as capital is more scarce, potential investors are more critical in their analysis of the product's potential. > Lots of capital doesn't mean investors are going to throw money at losing propositions. Right. As available capital approaches infinity, the expected ROI of ventures which obtain successful funding approaches zero. This is an oversimplification of course - if an asset is deflationary, the limit is the rate at which the asset gains value; if an asset is inflationary, the limit is the rate at which the asset loses value (i.e., a negative rate). The mechanic holds true, though.
graeham 11y ago
One man's capital (credit) is another man's debt.
- mohanmcgeek 11y ago
  Governments and corporations also take loans.

tootie 11y ago

But are they really chasing a limited resource? If investors think you're product is going to be profitable, you're virtually guaranteed to get funding. The only reason chasing capital is difficult is because that's frequently a hard sell. Lots of capital doesn't mean investors are going to throw money at losing propositions.

LyndsySimon 11y ago
> But are they really chasing a limited resource? Of course. There is not infinite value in existence, nor is there a means of creating value from nothing. > If investors think you're product is going to be profitable, you're virtually guaranteed to get funding. Well... this is always the case. The only difference is that as capital is more scarce, potential investors are more critical in their analysis of the product's potential. > Lots of capital doesn't mean investors are going to throw money at losing propositions. Right. As available capital approaches infinity, the expected ROI of ventures which obtain successful funding approaches zero. This is an oversimplification of course - if an asset is deflationary, the limit is the rate at which the asset gains value; if an asset is inflationary, the limit is the rate at which the asset loses value (i.e., a negative rate). The mechanic holds true, though.

graeham 11y ago

One man's capital (credit) is another man's debt.

mohanmcgeek 11y ago
Governments and corporations also take loans.