Jonesing for the Dow/Savings Rate

Doug Henwood dhenwood at panix.com
Fri Aug 7 10:50:54 PDT 1998


Patrick Bond wrote:


>The failure to undergird
>financial paper ("fictitious capital") with productive assets is what
>bubbles are all about, right?

Well, the Southeast Asians did plenty of investing in real assets - maybe too much. Can't you have a real sector bubble too, with overexpansion resulting in unusable (i.e., unprofitable) capacity?

Doug



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