WeWork’s IPO Disaster and the Problem of Easy Money

When operating in an easy money regime, finding investments capable of providing reasonable returns becomes difficult to near impossible. Low risk vehicles are bid down to near-zero returns, pushing investors into ever riskier vehicles to generate enough return to cover objectives, be they paying employees of the investment house or an individual trying to set aside money for retirement. Fearful of losing out, investors will pile into investments based on poor judgment and success is based on nothing more than luck.

 

 

 

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