Jonesing for the Dow/Savings Rate

[Charles Brown]

Isn't is true that crises of overproduction are typically
in the real asset sector as well as the ficticious
capital sector. ? That is the Southeas Asian
crisis is typical in this regard ?

Charles Brown


>>> Doug Henwood <dhenwood at panix.com> 08/07 1:50 PM >>>
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