The surplus arose from the success of the fifth cycle and the maturation of the microchip economy. As I’ve mentioned several times, the big issue is lots of available money and not enough opportunities to invest in things that create wealth. The money is unevenly distributed, clustered in the upper half of society and increasing its concentration the higher you go. Given low interest rates on money, it makes little sense to hold that money in banks or in bonds that pay low interest. Rather than holding money, investors decide to buy things, such as real estate. Therefore, home prices,
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