Get Shorty: A Loser's Answer - Up and Down Wall Street Daily - R. Forsyth - Barrons.com
I always like the old saw about "crowding out". If the money invested in the bonds is 'really' saved (vs. printed new) then there are two questions?
a) Is this money that can't find any other home (i.e. no investment into job creating business, technology, research, etc.).
b) Or, is there so much money around that there's no crowding out of money that could go into financing cars, houses, businesses?
Somehow, with all this government borrowing by developed countries to fund entitlements and bureaucrats, one can't help but think crowding out of private investment is or has to be taking place.
(The number in yesterday's WSJ on the cost to start a business in Greece (>$10,000) vs. US (<$200) was rather telling of another aspect of this 'crowding out' (or maybe, 'crowding up' to pay bureaucrats?))
Wednesday, February 24, 2010
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