ChuckintheOC Wrote:
Oct 29, 2012 3:15 AM
Labeel, it is helpful to think of capital as like water. Where water seeks a level driven by gravity, and determined by topography, capital seeks its level driven by rates of return, and determined by risk. At present the private sector, because of the huge current risk, can't compete with low return/low risk investments, such as Treasury securities, and so capital "flows" into these types of investments. The quickest way to reverse the tide is to reduce the risk. Capitalists understand that Obama could care less about risk to capital, and that Romney has spent a career founded upon appreciation for this risk. Romney as president will reverse the perception, and thus the tide that is crippling the recovery.