Running out of productive capacity

The unprecedented use of capital and financial innovation, maybe an indicator of the fact that the capacity of the current economic structure to produce growth has almost run out.

Let's say you have a certain capacity to run. Utilising that capacity at the lower levels is easy. As you move towards the higher end of utilising that capacity, the effort (mental determination) required is greater and greater. But beyond the limit of that capacity no amount of effort (mental determination) can do it.

Towards the fag end of the capacity of an economic structure, we see an unprecedented use of capital (and financial innovation) to drive growth. And then comes the collapse, where no amount of financial innovation can drive the growth anymore because the productive capacity of the economic structure have been exhausted.

I think the current economic structure will have to undergo restructuring to Build new and additional productive capacity. Much like the runner who failed to reach his objective, must go back and work at building a new level of capacity.

How much growth the next cycle will produce, would depend on how deep this restructuring is.