For Chastened Investors, Capital Ideas
- There has been a misallocation of capital for years. Speculative activities have been favored over productive activities.
- He also added that 95% of credit default swaps are not used for hedging but instead speculation on price action. As a result, much intellectual and financial capital is wasted instead of being used to enhance growth.There's no question that speculation needs to be reigned in. Check out the full interview.