Income Inequality and the Great Recession

It has always been a contention of mine that massive income inequalities and the resulting wealth polarisation leads to an excess of available capital in relation to the available investment opportunities leading to stagnation and collapse. I recently stumbled across a report: Income Inequality and the Great Recession by the U.S. Congress Joint Economic Committee which seems to roughly corroborate my views. I recommend reading it, but I'll put out a few choice snippets:

 "Income inequality may be part of the root cause of the Great Recession. Stagnant
incomes for all but the wealthiest Americans meant an increased demand for credit,
fueling the growth of an unsustainable credit bubble. Bank deregulation allowed
financial institutions to create new exotic products in which the ever‐richer rich could
invest. The result was a bubble‐based economy that came crashing down in late 2007"

"Income inequality may be part of the root cause of the Great Recession. Stagnant
incomes for all but the wealthiest Americans meant an increased demand for credit,
fueling the growth of an unsustainable credit bubble. Bank deregulation allowed
financial institutions to create new exotic products in which the ever‐richer rich could
invest. The result was a bubble‐based economy that came crashing down in late 2007"

The graphs alone are worth viewing. Over and out.