Malinvestment

Action by R. B. Carman against the executors of the will of John Wightman to recover the amount due upon a mortgage, and counterclaim by defendants against R. B. Carman, James Leitch, and R. A. Pringle, for malinvestment of funds, etc.

Even if market participants realize that price signals may be distorted, they have no good way to know what the undistorted set of prices would be, so malinvestment takes place during the boom phase of the business cycle.

It is painful for the owners of malinvestments but fast and efficient.