Yes, agree completely. But, that 20-year run of malinvestment must come due at some point. And it looks like that point might be now. Artificially low-interest rates are a treat too compelling to deny, but, its still a market perversion. And market perversions create problems, in this case, a multi-decade accumulation of misplaced capital. I guess we're about to see how that plays out.
I was in finance prior (and after) 2008. The rainbow flags are particularly grating and offensive. By this, I mean offensive beyond the typical ways "pride" is offensive. The typical persona occupying some sort of banking position lacks virtue and character. Wanton greed, extreme selfishness, and juvenile tendencies abound. They're terrible people. And they're made even more terrible when combined with some kind of twisted depraved sexual virtue signaling. A run-of-the-mill investment banker or trader has absolutely no business lecturing anyone on "morality", let alone a depraved satanic "morality". The overall ensemble leaves a bad taste in one's mouth and makes your skin crawl.
This:
a multi-decade accumulation of misplaced capital
That's what we see.
In my opinion it's all caused by excessive government manipulation of the money markets; More or less since the 1970s.
In a free market interest rates would be dynamic. Depending on the person taking a loan, on the object, on the business on the duration. And over the years it would be more or less stable. Somewhere on average between 5% and 10% depending on the type of investments.
What we have seen in the last 10 years is bizarre, 0% interest with inflation can by no means allocate capital correctly. For 40 years people and businesses have been rewarded for taking on debt. How Trump got rich is by taking on debt to build a tower, and refinancing that debt later against lower interest. This is not business. This is not productivity. He got rich on the debt and the tower appreciated due to money printing and lower interest rates.
Logically a house should depreciate, when it gets older, it should be less valuable as stuff is broken, used, just like 2nd hand shoes.
Like you say the state of the economy is the result of a multi-decade accumulation of misplaced capital. And we see what it is, bad roads, no industry, multibillion non-profitable businesses, patent laws protecting elites. Investment should lead to production. A machine. A business. Work should lead to production.
Multidecade malinvestment leads to this:
I have been in finance as well and I don't share the observation of evil. At most I see very juvenile behavior, like myself going for 15 years after sex, status and money, they are a misguided kind. What I liked is that I didn't see a lot of pretense, most guys understood they were there for their own desires.
I have problems with the governments who broke down the system of capital allocation. With their manipulation of interest rates to serve political goals while blaming the bankers and taking the moral high ground. I have seen both sides closely. Politicians and bureaucrats have 0 reflection are self aggrandized moralists. All the guys I know in banking don't care 1 bit about about rainbow flags, and they don't lecture anyone, they put them on because the master says so.
Too passionate about it, because I'm so done with politicians blaming all sorts of groups all the time.
