I'm here to tell you. It's all about opportunity cost; money is fungible and, these days, if you've got millions or billions of Bongo Bucks, moving them among government instruments, corporate bonds, and stocks is just a matter of a mouse click.
With federal instruments running near 0%, what's a Daddy Warbucks to do? Get a real job, working for wages? Not on your life! So where to put the Bongo Bucks? Stocks, of course. While some accuse the Fed of printing money, that's really not the impetus. When the Fed did print money during the Great Recession, the rationale, besides just saving the financial system from itself was that said moolah would be used for capital investment
Andy Haldane, chief economist at the Bank of England, argues that "the main reason world growth has been subpar is because businesses have not been investing sufficiently".
This was not supposed to be the case. Below-par investment was the sort of problem that central bankers' aggressive response to the crisis could fix. Many now question whether monetary policymakers can have much impact on investment.
[2015]
By and large, didn't happen. Many reports substantiate the notion that corps sat on, and continue to, piles of cash. The rich get richer, and the poor have kids.
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