I have had this niggling feeling for a long time that money (and capitalism) gets increasingly more divorced from reality, particularly as money is printed and these astronomic speculative stock market valuations are created based on some optimistic future scenario.

This is not some pearl clutching moralistic argument, but a practical observation based on:

- Transfer of ownership is not necessarily possible. You can't buy a technologically sensitive company because of regulations. Even if you can buy a foreign firm, transferring the talent, operational base etc. might not be possible. A CEO can't sell off his share of stocks even if they're worth billions because the loss of investor confidence.

- Physical limitations on quantities of goods. There is a finite supply of real estate. If everybody in the world wanted a new car suddenly (and had money for it), car prices would go through the roof, and only a small fraction would actually get it.

Imo capitalism is not flawed in the way that it is incapable of handling these situations, but it is very flawed in that money is an increasingly poor proxy for the abstract concept of value.

This flawed nature of capitalism has been long since endemic (and dare I say integral) to the system, much more value has existed on paper than in reality (see banks), but I think there might be a breaking point at which the system might collapse and hyperinflation would set in.