Alternatively, flailing investors — frustrated by low returns and desperate for yield — can delude themselves, pouring money into ill-conceived projects, be they subprime lending or capital flows to emerging markets. This can boost the economy for a while, but eventually investors face reality, the money dries up and pain follows.Or,... the rich, controlling huge piles of cash due to extreme wealth inequality and,... frustrated by low returns and desperate for even more wealth, chase investments around the globe. Their wealth sloshes in and out of various markets/investments creating bubbles and leaving busts/pain when their wealth flows on to the next market.
Spreading some of the global wealth around would help reign this in.
Higher top tax rates in his country would be a good start.
'via Blog this'
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