But there is another more decisive factor at play: in the long run, it makes little sense to invest in a mature economy unless it is technologically advanced or has an abundant supply of labour at its disposal. For these two factors are key to inducing higher income expectations on the part of enterprises.
Even most of those inside and outside the official sector who argued for stronger capital or other prudential standards did not appreciate the degree to which the secondary mortgage market had turned into a house of cards.