For a yet to be created “Recomended” chapter for “p’BD’DiA” publications…

…Magazines, Websites, bloggers, writers, and misc. other media forms…

Someone first discovered in
Krugman’s comments:


is a trusted commenter Cornwall 4 hours ago

Low or negative interest rates mean that there is more investment money than good investments, so that any investment offering safety and decent returns is so in demand that its price goes up until the return is no longer decent. Left to its own devices, markets adjust by reducing the amount of investment money through bursting bubbles and crashes. Wiping out some of the investors or giving them all substantial haircuts makes the excess investment money vanish.

Excess investment money can be dealt with without making it disappear. It can be taxed so that the investment money available is a better match with the need for investment money. The taxes can then be spent on infrastructure, education, and enhancing the quality of life in common areas. Infrastructure and education will not vanish in bubbles, so the money is much safer than in private hands that will unavoidably use it to blow bubbles.

Posted in "p'BD'DiA" from misc. Sources

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: