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2015-03-11 — dailyreckoning.com
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Prosperity depends on savings and capital formation. You have to devote real resources to new output capacity. You have to hire people and find new and better ways of doing things.
But business investment has gone down since 2007. Based on fourth-quarter figures from 2007 and 2014 and annualized, $400 billion was invested in business development in 2007 against only $300 billion in 2014.
Meanwhile, businesses borrowed about $3 trillion more.
Where did all this money go?
It appears to have gone into share buybacks, mergers and acquisitions, bonuses, fees and other speculator payoffs.
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