How Malinvestment Poisons the Entire Economy Washington's Blog: "Malinvestment–the systemic consequence of the Federal Reserve’s policies of near-zero interest rates and abundant credit–doesn’t just inflate destruction asset bubbles: it poisons productive assets and the entire economy. Malinvestments arise when credit is cheap and abundant, as it costs speculators very little to borrow money for gambles, and they can in essence buy lottery tickets in the asset bubble of the day without having any skin in the game, i.e. without having to put any of their own money at risk...."
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