Capital Saturation

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Dictionary Says

Definition of 'Capital Saturation '

An economic state in which real income is high and is expected to continue to rise, causing the general public, corporations and even public entities to focus on consumption rather than savings. Capital saturation is usually associated with low interest rates, which further encourage spending and discourage savings. As a result, capital saturation would lead to an economic upswing as companies spend more money and create jobs.
Investopedia Says

Investopedia explains 'Capital Saturation '

A potential problem with capital saturation and the boom it can produce is that the economy may reach a state of euphoria that is fully dependent on the current conditions of prosperity. If the elevated levels of consumption are reduced for reasons such as an economic shock or an increase in interest rates, firms will be left with excess capacity in their facilities. The shift away from this bubble type of economy may result in an eventual bust.  
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'Capital Saturation '

  • How Can Emerging Markets Avoid The Middle-Income Trap? ...

    http://financialedge.investopedia.com/financial-edge/1011/How-Can-Emerging-Markets-Avoid-The-Middle-Income-Trap.aspx
    ... Fourth, they operate export-dominated economies that emphasize capital-intensive
    growth ... are utilized and investment in more urban factories leads to saturation. ...

  • Using Porter's 5 Forces To Analyze Stocks

    http://www.investopedia.com/articles/fundamental-analysis/11/using-Porters-5-forces-for-stock-analysis.asp
    ... Threat of Increased Competition From Rivals Market saturation will often prevent ...
    can exist in the form of patents, substantial capital requirements, government ...

  • Granite Wash Bites Back

    http://stocks.investopedia.com/stock-analysis/2011/Granite-Wash-Bites-Back-PVA-FST-LINE-SM0810.aspx
    ... In 2007, the company spent 95% of its capital budget on natural gas development. ...
    of its leasehold at the Powell prospect, citing high water saturation in wells ...

  • Private Equity Well Drying Up

    http://stocks.investopedia.com/stock-analysis/2007/Private_Equity_Well_Drying_Up.aspx
    ... As a potential sign of saturation, Blackstone Group founder Steve Schwarzman is ... more
    information, check out Cashing In On The Venture Capital Cycle.) Looking ...

  • The Next McDonald's

    http://stocks.investopedia.com/stock-analysis/2010/The-Next-McDonalds-MCD-CMG-YUM-JACK-PNRA-SONC0630.aspx
    ... With returns on capital already second only to well-established Yum! ... Panera can probably
    double its store count before worrying about saturation, and the ...

  • CarMax Stays In The Fast Lane

    http://stocks.investopedia.com/stock-analysis/2011/CarMax-Stays-In-The-Fast-Lane-KMX-AN-SAH-F-RUSHA-GNTX-AAP0401.aspx
    ... Who knows what the saturation point is for used car superstores, but it likely ... and
    carries a lower multiple (9.5-times), but the returns on capital between the ...

  • Solar Stocks Eclipsed

    http://stocks.investopedia.com/stock-analysis/2008/Solar_Stocks_Eclipsed_FSLR_SPWR_STP.aspx
    ... European markets are now approaching the saturation point with solar installations,
    so the US market would then be the sole remaining major source of demand to ...

  • Introduction To Momentum Trading

    http://www.investopedia.com/articles/trading/02/090302.asp
    ... He is looking for a saturation point, where orders start piling up on the offer
    and bidding slows or thins at the market price a few levels back on the Level 2 ...

  • How do businesses decide whether to do FDI via green field ...

    http://www.investopedia.com/ask/answers/06/greenfieldvsacquistion.asp
    ... Finally, if a foreign market is at or near its saturation point, buying an existing ...
    you want to sell it back to yourself, do you have to pay capital gains taxes ...

  • The 2007-08 Financial Crisis In Review

    http://www.investopedia.com/articles/economics/09/financial-crisis-review.asp
    ... 2004, the Securities Exchange Commission (SEC) relaxed the net capital requirement
    for five ... rates started rising and home ownership reached a saturation point. ...

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