Comment by lazide

Smart People with money are willing to give it to people if they can make them more money.

Why would anyone give them money if they were just going to throw up their hands and go ‘well, nothing we can do I guess!’.

There is of course the risk that the money gets burned instead of more money getting made, which is the risk in risk/reward.

Rent seeking type behavior tends to happen when there are no obvious ‘green field’ type endeavors to invest in. Or when risk appetites are trending negative.

Note - many of those people with money that want to use it to make more money are retirees, pension funds, etc.