This paper shows that a segmentation of resource ownership from the ownership of other factors of production may lead to capital market failure. The paper considers the case where resource owners and users are separate, they both have iso-elastic utility, and the production technology is CES in resources and one other factor called labor. When the elasticity of substitution of resources for labor is greater than one, laborers will not purchase and save resources. Their desired extraction path for the resource would be to use more of the resource at the beginning of the planning period than the market allocation provides.