'Diminishing marginal returns'
Imagine the hamburger at lunchtime.
You ate one and it was so good that you ate another.
The second wasn't quite so enjoyable, but still not too bad all.
So you eat another.
The third was definitely not as good at all.
"I wonder what the fourth, will be like, just out of curiosity."
So, you eat burger #4 ... now its not very enjoyable at all .... etc
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From Bloomberg, the China diminishing marginal returns:
There's less and less power behind policy makers' stimulus. For each $1 in credit expansion, China added the equivalent of 27 cents of gross domestic product last year, the least since 2009
As recently as 2011, each $1 generated 59 cents
The diminishing mileage for credit raises a conundrum for President Xi Jinping and his premier, Li Keqiang, of whether to let China slow further as they shut down surplus smokestack industrial capacity, or keep pumping liquidity. It also highlights the importance of financial-industry reforms
More here (not more hamburgers)
