Government should crunch that births numbers with high attention. What they do now; promote births between poor (social help) and discourage births between middle class (too costly to raise a child). The trend should be reversed, ASAP.
Now there is an ocean of cash sitting in 10-year bonds paying 2.4% with an economic outlook that can't even guarantee that much for a typical business investment. That interest rate is telling me that finding ANY returns in the future is going to be extremely difficult.
just because the ocean of cash is earning 2.4% doesn't mean that you can't get any good returns better than that. i think we just have too many extremely rich people who have so much money that they don't need to grow their money anymore so they just sit on bonds . they don't have to take any risk at all esp in such low inflation environment. returns in stock market ( or any other productive investment) are much higher but involves some risk. like you said, there is no way to motivate the extremely rich to invest in productive assets.
I agree with both of you on this matter.
2.4% 10-y. Bonds are about 4% CAP rate in real estate (assuming appreciation follow inflation).
Currently, Japanese investors are satisfied with 0.5% return on 10-y. Bonds. http://www.bloomberg.com/quote/GJGB10:IND