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Politics : Formerly About Advanced Micro Devices

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To: TimF who wrote (852699)4/28/2015 2:18:05 AM
From: combjelly  Read Replies (1) of 1576850
 
you would have a lot of disruption as investment was redirected

Would that be a bad thing? Right now we have more money chasing investments than there are quality investment opportunities. That tends to cause investment bubbles and those lead to financial collapses. In addition, with the huge sum of money seeking investments means that getting just a tiny percentage of that money can make someone extremely wealthy. So the incentives to bend, break and downright ignore the rules that keep the system stable are very strong. And that leads to total system meltdowns like we recently experienced.

The present system has evolved to where it is very, very volatile for no reason other than to make a relatively few individuals very, very wealthy. It doesn't efficiently allocate or manage resources which is supposed to be the whole point of the financial industry. In fact, that part is now just a minor part of the whole picture.
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