"The big question, though is how much longer all these shops and properties can remain vacant."
Say you've got 10 million bucks. You give it to a rich guy, and he buys a piece of art with it, bumping the value from 30 million to 40 million. Now, what jobs are created there? The same people curate it, move it around, maybe there's another insurance guy hired because of it, but mostly the money just sits there, doing nothing.
The Federal Reserve reported Thursday that nonfinancial companies had socked away $1.84 trillion in cash and other liquid assets as of the end of March, up 26% from a year earlier and the largest-ever increase in records going back to 1952. Cash made up about 7% of all company assets, including factories and financial investments, the highest level since 1963.
They are all designed to place massive amounts of capital in the hands of the already wealthy, who rarely do anything smart with their money, much less create jobs or simulate demand for anything other than the "parading of riches."
The top 10% own 80% of stock assets, and by ratio pay less taxes on dividends and capital gains than many people below the poverty level have taken out of their paychecks.
A branch of economics .. has charted property collapses over the last 100 years and found that booms create the conditions for a downturn around every 18 years.
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