Comment Excess capital causes the boom and bust (Score 1) 371
There is just too much money and too little demand. The rich and corp have a lot of excess income because of the cuts in their tax rates. The excess money is more than what the poor and middle class can borrow. The result is that real interest rate is almost zero. So all of this excess money goes into speculation, just bidding up the price of some financial commodity. This creates the boom and bust that kills the economy. As long as the excess capital exist the boom and bust will continue and the economy will be grind down.