>If truly productivity enhancing investment is effectively dead (or, equivalently, there is so much paper wealth chasing a withering set of profitable opportunities for investment), then capital's only game is to chase high valuations backed by future profits, which means playing the Keynesian beauty contest for keeps.

What if profit is dead because wealth is all concentrating in people who don't need it from a marginal consumption standpoint, which means asset prices blow up because everyone rich believes that they need to "invest" that money somewhere... but demand shrivels outside of interestingly-subsidized areas like healthcare because nobody else is making enough to even keep up with the asset price rises?

And without demand, where would innovation come from?