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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: thames_sider who wrote (94282)	11/6/2008 12:08:48 PM
From: TimF	Read Replies (1) \| Respond to of 541404

Money invested in bonds goes to someone. Funds from corporate bonds go to companies and help fund their activities. Funds from government bonds fund government activities. Funds from bonds or other securities backing home loans funding the construction and purchase of houses. To the extent that too many houses where built, and the prices on them went too high, that is "a misallocation of investment in the real economy". Where's investment gone in the last 8 years? All sorts of places. Investment in the "real economy" by any reasonable definition or "real economy" has been very large over the past 8 years. I don't see the 5% of people who now own close to 40% of US wealth buying US companies, growing them, creating new jobs there. You don't see it, but that doesn't mean it hasn't happened. Even when they do, it's people like Icahn trying for greenmail and financial re-engineering (which seems to be a epuhemism for "take on more debt, cut jobs and pay me back with a bonus"). Know it wasn't just for re-engineering and restructuring, and in any case such restructuring is overall beneficial to the economy.