Eventually, the economic boom created by the Fed's actions is found to be unsustainable, and the bust ensues as this malinvested capital manifests itself in a surplus of capital goods, inventory overhangs, etc. ❋ Ron Paul (2011)
Those who still have jobs; malinvested capital has to be liquidated and everyone employed by it has to find a new occupation. ❋ Unknown (2009)
These lower interest rates affect the allocation of resources, causing capital to be malinvested throughout the economy. ❋ Ron Paul (2011)
Perhaps it was even malinvested because the government did it: A lot of folks would argue that the water and powerr provided by the Hoover Dam have encouraged population growth in the southwest US that far exceeds the true carrying capacity of the land. ❋ Unknown (2009)
With interest rates below the realwhich includes housing asset inflation rates, deposited money in saving instruments loses its purchasing power value its week that it is malinvested. ❋ Unknown (2009)
Couldn't the argument be made that a stimulus could speed along the process of re-allocating the capital which was malinvested in housing? ❋ Unknown (2008)
It is the fact that billions — make that trillions — of dollars were malinvested in markets where the increasing values could not be sustained. ❋ Patrick Vessey (2008)
In that way capital malinvested in unproductive projects would be freed up and this would allow new lending to be directed toward profitable ventures, paving the way, as it were, to a recovery. ❋ Unknown (2010)
Third, in the normal boom-and-bust cycle, the malinvested lines of production are liquidated or transferred to those areas supported by patterns of consumer choice. ❋ Unknown (2009)
More bankruptcies would clean out malinvested resources and enable economic growth again. ❋ Unknown (2009)
The liquidation of unsound businesses, the "idle capacity" of the malinvested plant, and the "frictional" unemployment of original factors that must suddenly and en masse shift to lower stages of production - these are the chief hallmarks of the depression stage. ❋ Unknown (2009)
If lines of capital are created that are not compatible with saving and spending patterns set by consumers, then the capital is malinvested. ❋ Unknown (2009)
In redistributing wealth and putting it to malinvested ends that are not productive (IE: not profitable in a free market atmosphere), it is draining this nation of its potential ability to correct those imbalances and begin to align with reality and become prosperous again. ❋ Unknown (2009)
Always in the past, the bailouts have worked to cover up the underlying malinvested capital. ❋ Unknown (2009)
It grew because the fiat money was used to lower interest rates, and these lower interest rates led to malinvested capital. ❋ Unknown (2009)
The capital it has caused to be malinvested and lost in housing is capital that is now unavailable for such firms as Wickes Furniture, Linens ‘N Things, Levitz Furniture, Mervyns, and innumerable others, who have had to go bankrupt because they could not obtain the loans they needed to stay in business. ❋ Unknown (2008)
