I agree with this analysis. The last point about the forced continuation of accelerating QE keeping zombie corporations alive is interesting. That leads to misallocation of capital and a threat of cascading defaults when these entities finally fall.
Technological disruption is creating new capital at a fast rate as we have seen with the tech sector.
I see no other path forward except printing even faster, allowing for the dinosaurs to die without the defaults taking down the entire system. Technologically disruptive new businesses will keep creating new capital.
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You are right. There is a serious misallocation of capital when zombie companies are allowed to persist. We are going to have to see them die to better position the capital.
Sadly that isnt likely to happen with the way things are.
This is where crypto currency is going to have to step in.
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