Is Making Money Self-Defeating Strategy?

This is one of those times that I wonder if I'm slipping off the edge of reason. But in a number of articles I'm currently working on, I keep coming back to various people in a range of financial fields making the same point: there's too much capital. Money's supposed to be good for economies, you'd think, but when you have a surplus of cash, the results are interesting. Too much money is one of the big reasons, apparently, that the credit crunch came about. Because so many nations, corporations, and wealthy individuals are trying to invest at a time when companies are not necessarily expanding, or when adding value might be comeing up with new code (low capital investment) rather than building new plants (high capital investment), we have one of the oddest examples you might find of high supply and low demand.

Risky credit became cheap becuse so many entities wanted to put their money into something, and stays cheap because companies don't need to expand. To need to expand, there would have to be wealth spread among a greater number of people who could then generate sufficient demand. In short, by having money concentrate at an ever greater level among a small group of people, there is less demand for investing that money, because most people don't have the money to spend on the things that drive business investment, and there aren't enough of the super wealthy to make up for it. So the accumulation of capital seems to limit its own growth potential, which makes some sense. But, my, who would have ever thought that capitalism could be its own worst enemy?