Excess capital leads to asset bubbles. Non productive. Maybe even anti productive. Some how we've simultaneously got both surplus capital and huge a decline of

Excess capital leads to asset bubbles. Non productive. Maybe even anti productive. Some how we've simultaneously got both surplus capital and huge a decline of new business formation. Coincidence? My pet theory (hunch) is that transaction costs discourage large funds from making medium and smaller sized investments. The uniqueness of Y Combinator kinda supports this hunch.