Capital Intensity

Capital Intensity
Starting in the 1930s, the Stalin government attempted to force capital accumulation through state direction of the economy. Most economists now believe that while the Soviet system allowed for rapid economic development into the 1950s, as long as large surpluses of land, labor, and raw materials could be tapped by the urban and industrial leading sector, this strategy led to an unbalanced economy with stagnant or slowly-growing standards of living. With the emphasis on raising capital intensity, diminishing returns were hit...

Stagnation? Slowly-growing standards of living? Diminishing returns? Oh oh. I'd say this supports my death of real yields theory and 1970s mindset somewhat.

JP Morgan: Investment Banking
Each of our sector teams covers a global client base in what are some of the most capital-intensive and rapidly consolidating industries in business today.

It doesn't get much more capital-intensive than building a home for a worker, without the income needed to support it, requiring no money down, and then giving him a teaser rate to keep his intitial payments low. Just better hope that same worker isn't in the construction or banking business (the apparent lifeblood of this economy).

I'm somewhat torn between the idea of cringing and throwing up (not that I really need to choose between the two if push comes to shove, as there will probably be plenty of time to do both).