Jonesing for the Dow/Savings Rate

[Fellows, Jeffrey]

But is it correct to characterize what remains from a manufacturing
relocation movement (from Indonesia etc., to areas of even cheaper labor
i.e., mainland China) as a productive asset (capacity) bubble?  Jeff

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From: Doug Henwood
To: lbo-talk at lists.panix.com
Subject: RE: Jonesing for the Dow/Savings Rate
Date: Friday, August 07, 1998 1:50PM
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