4 ms·
It's hard to overstate how important monetary policy is in this state of affairs. CapEx has been plummeting for years because it makes more sense to lever up wi
by a8da6b0c91d 12y ago
It's hard to overstate how important monetary policy is in this state of affairs. CapEx has been plummeting for years because it makes more sense to lever up with artificially cheap debt and gamble with equity. We see less upstarts and less major capital investment by businesses because that's way riskier than the guaranteed returns that can be got through other common schemes predicated on cheap money.
http://davidstockmanscontracorner.com/the-financialization-of-american-business-how-cheap-debt-fuels-the-bubble/ http://davidstockmanscontracorner.com/the-financialization-o...
- zanny 12y agoDing, we have a winner. The entire state of the economy is predicated on the effects tax policy has on where money is safest, and where money is least taxed, and of course the money goes where the optimal returns for the lowest risk are. And those are not in entrepreneurship.