“The wealth that has grown and concentrated in relatively few hands is greater than that which can be absorbed by real investment.
“Much of this excess money is poured into… its infrastructure (canal mania, railway mania, internet mania), often leading to overinvestment that might not fulfil expectations. So at this time there tends to be a sort of gambling economy with asset [price] inflation… looking like a miraculous multiplication in wealth.
“Confidence in the brilliance of financial geniuses grows and attempts at regulation are seen as hindering the way to a successful society. This new capacity of money to make money attracts more and more people to get a piece of the action…
“…the unsustainable structural tensions that build up in the economy and society, especially during the Frenzy, must be overcome by a recomposition of the conditions for growth and development… The hard conditions that were already present for the poor worsen considerably after the collapse”.
-Carlota Perez, Technological Revolutions and Financial Capital
