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It's much weirder than that. All we have are partial theories. To wit: if it was easy, everybody would be doing that. Maybe that will be true in a few years; du
by ArkyBeagle 11y ago
It's much weirder than that. All we have are partial theories. To wit: if it was easy, everybody would be doing that. Maybe that will be true in a few years; dunno. You get government or (something) money, start something like an Amazon store, it sustains you.
We've already seen the "everybody sells each other insurance" thing happen. That was the dystopian prediction back in the 1970s.
Since other factors ( other than land ) have declined in price, risk dominates the remaining cost. If all you look at is the winners in a risk-intensive market, it looks biased. And actual physical capital - machines that used to take up space - is no longer a guarantee of an income. Indeed, physical capital has its own risks.
The real problem is that people who have a lot of equity must do certain things to liquidate it. Those things will invariably add debt to the thing they sold. This debt accumulates until it strangles the firm.
They don't care because now they've left town with a suitcase full of money. And they nearly have to do that because risk.
Innovation slowly destroys constraints. Those constraints may or may not be lynchpins to what sustained you before.