From Bain and Company's Global Private Equity Report 2015 (http://www.bain.com/bainweb/PDFs/Bain_and_Company_Global_Private_Equity_Report_2015.pdf):

"How capital superabundance helped rescue PE following the downturn. As they surveyed the wreckage of the global market meltdown and took stock of what lay ahead, PE investors found little cause for optimism. A trio of formidable challenges loomed: massive asset write-downs mandated by mark-to-market accounting regulations, seemingly impassable roadblocks at every exit channel and a towering wall of portfolio company debt refinancings needed to avoid defaults." (Page 25) 

PE is Private Equity.

"In the end, none of these challenges led to the industry's downfall, thanks to the heretofore underappreciated role of superabundant capital. Central bank programs unleashed a flood of liquidity that quickly brought rates on high-yield bonds and leveraged loans back to prerecession levels." (Page 25)


"Rather than having to worry about a potential credit crunch as they struggled to restructure debt, PE funds were buoyed by a flood of liquidity. " (Page 26)

"The period following the downturn had its share of notable multibillion-dollar PE defaults. However, failures had little to do with the size of the portfolio company or how much leverage the buyout fund GPs used to finance it. The chief reason for many of the PE defaults associated with the financial crisis was the fact that the companies that stumbled were not well positioned for success from the start. The downturn did not cause these deals to fail; it merely hastened their downfall." (Page 26)

We see that, according to Bain and Company, increased liquidity, provided by central banks, solved the private sector's problem. Why not apply the lesson to the public sector? Why not use a "flood of liquidity" to address income inequality by funding a world-wide basic income?

We also see the Modigliani-Miller theorem of finance supported by the last quoted paragraph: companies that failed failed because of bad ideas, not how they were financed. We should stress that a basic income is a good idea; then, finance teaches us, how we finance it does not matter. Debt financing or created money financing will not cause basic income to fail, if it is a good thing.

[Link to Romney with Bain executives lighting cigars with $100 bills] Do you think Romney was smiling because he knew there is plenty of money creation potential to fund his conspicuous consumption?