Mark JONES
Patrick Bond wrote:
> I don't think there's a real dispute here... just that "investment"
> should mean the kind of "productive" (surplus-value-generating)
> investment that in "normal" or non-crisis processes of capital
> accumulation _undergirds_ financial assets. The failure to undergird
> financial paper ("fictitious capital") with productive assets is what
> bubbles are all about, right? The idea of overaccumulation (excess of
> investment in productive assets) helps us understand why investors
> switch from productive to financial-speculative circuits...
>
> > From: Carl Remick <cremick at rlmnet.com>
> > Re Michael Brun's observation: I thought the Savings and Loan crisis and
> > other recent bubbles pointed to an excess of investment, not a deficit,
> > and by the above syllogism to an excess of saving as well. Excess
> > saving/investment is money for which no income-earning opportunities (at
> > least no reasonable, non-fraudulent ones) are available.
> >
> > Good point. I can't fathom this tendency to talk about capital formation
> > in the abstract without mentioning the idiotic ends to which this
> > capital is typically applied.
-- Mark Jones http://www.geocities.com/~comparty