That's a fair point. Many economies have faced this exact challenge. The high-savings-and-heavy-investment playbook worked brilliantly when there was serious capital scarcity—when demand for productive assets far outpaced available resources. Back then, funneling everything into infrastructure and industrial capacity made total sense. But here's the kicker: that model has a shelf life. Once you've crossed into surplus capacity territory, the old formula stops working. You're left recycling capital into projects that don't generate returns, and that's where the real friction begins.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
14 Likes
Reward
14
4
Repost
Share
Comment
0/400
LiquidationWatcher
· 01-07 14:33
ngl this is literally what happened to everyone who got overleveraged in 2022... you keep pouring capital into positions that don't move and suddenly your health factor is screaming. watched too many portfolios die this way.
Reply0
ContractFreelancer
· 01-07 01:34
ngl That's why those former infrastructure maniacs are starting to drop the ball now... Overcapacity is really a nightmare.
View OriginalReply0
MetaverseVagabond
· 01-06 14:54
Basically, it's about stubbornly sticking to outdated development models, continuing to invest wildly despite overcapacity, and ending up losing everything... Many countries have been following this path in recent years.
View OriginalReply0
GasWaster
· 01-06 14:41
ngl That's why those countries that rely on piling up investments to make a living are now starting to go bankrupt... Overcapacity is really a dead end; without demand, throwing money at it is useless.
That's a fair point. Many economies have faced this exact challenge. The high-savings-and-heavy-investment playbook worked brilliantly when there was serious capital scarcity—when demand for productive assets far outpaced available resources. Back then, funneling everything into infrastructure and industrial capacity made total sense. But here's the kicker: that model has a shelf life. Once you've crossed into surplus capacity territory, the old formula stops working. You're left recycling capital into projects that don't generate returns, and that's where the real friction begins.