Put another way, when the likes of Bear Stearns, Goldman Sachs, or even Even Harvard University loses a bet someone else wins. Does anybody have any idea who the winners on these bad gambles are socially, and what can be said about them. Does this amount to a net export of ownership and Capital abroad or is this generally just a redistribution of wealth possibly downward. Ceteris paribus, I would think this is a good thing. Like Clinton's escapades, it calls into question the competance and morality of the ruling elites.
A related question, which follows from my reading of Doug's book. It is apparent that finance Capitalism in the US especially Market Investment Banking, has recently become bloated and more inefficient than it was previously. The process started in the 80's and has accelerated in the 1990's. Whats the reason for this happening now? Did this happen before the great depression? I can easily think of many hypotheses to explain this but I don't have any hard data. Is anything like this going on World Wide? i.e. Is Finance Capital in the Japan and Europe consuming a larger portion of the total wealth.
--mike -- Michael Cohen mike at cns.bu.edu Work: 677 Beacon, Street, Rm313 Boston, Mass 02115 Home: 25 Stearns Rd, #3 Brookline, Mass 02146 Tel-Work: 617-353-9484 Tel-Home:617-734-8828 Tel-FAX:617-353-7755