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> you end up building capability to produce goods and services for which there isn't enough demand to support that capability. It's inefficient. Ohh, makes sen
by sndean 10y ago
> you end up building capability to produce goods and services for which there isn't enough demand to support that capability. It's inefficient.
Ohh, makes sense. Thanks for putting that in a clear way. So, while it's painful, you could say bubbles bursting is healthy...
Whenever I try to say that around friends I come off as malevolent. I'll use your words next time.
- damptowel 10y agoNote that overleveraged companies tend to outcompete more conservative ones in the short term, they just have more weight to throw. And if enough of them go down at the same time, the resulting slump won't do decent investors any good either.
- damptowel 10y agoNote that overleveraged companies tend to outcompete more conservative ones in the short term, they just have more weight to throw. And if enough of them go down at the same time, the resulting slump won't do decent investors any good either.