Quote:
Originally posted by taxwonk
The problem with "wealth" created by a surp;us of dollars chasing a fixed amount of capital, is that it creates a bubble. The bubble is inevitably followed by a vacuum. Witness the tech bubble.
|
Another analogy is the real estate bust of the late 80s. What's especially interesting about that one is that the run up in investment was caused, in part, by government policies (especially the availability of real-estate syndications that functioned as tax shelters) and the bust was triggered to a great extent by those policies being reversed (in the 1986 Tax Act).
