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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (45306)1/15/2009 1:19:29 AM
From: elmatador  Respond to of 217822
 
As a saver, I save keeping in what is certainly going up.



To: TobagoJack who wrote (45306)1/15/2009 1:29:09 AM
From: elmatador  Respond to of 217822
 
That's why we need rich people. To put savers' money to use they allocate savings and that is what powers the finance sector.

That goes well until there is an unbalance. Once capital is hogged and the allocation is done into a single place to the detriment of other countries, capital starts being wrongly allocated.

All what is called economic cycles stem from this: Capital hogging and misallocation of capital.

Give you an example: If capital is hogged, you can't get investment in mining, give a decade or two and there is certain be a lack of metals and their prices skyrocket.

If capital is hogged and there is no harbor and roads expansions, same again, bottlenecks are appear and contribute to the prices skyrocket.

Prices skyrocketing attacts speculators and there you are: 2006 to 2008 commodities 'cycle'.