A striking feature of the global economy, according to World Bank and OECD data, is the low rate of capital investment spending by businesses. In fact, the rate of investment to GDP seems to have had a downward trend for a long time. One potential explanation is that there is a dearth of profitable investment opportunities.
1  The views expressed are my own and not necessarily those of others at the Board, on the Federal Open Market Committee, or in the Federal Reserve System. 2  Ownit Mortgage Solutions, one of the top 20 subprime mortgage originators nationally, filed for bankruptcy on December 28, 2006. Virtually all such firms have since either failed or been acquired.