IF you would understand Capital formation, if you were to grasp this you would have greater appreciation for why venture (not vulture) capital is so important. Our lack of understanding in the critical role of long term capital is crippling the worlds economy.

Blessed Economist: Unintended Consequences

getrad2.blogspot.com

the United States and the rest of the world had a surplus of risk-averse, short-term capital. Risk averse short short-term capital will only fund investment, if equity underwrites the risk. The United States and the rest of the world have a shortage of equity and risk taking rather than a shortage...