>Patrick Bond wrote:
>
>>The critique is of the system as a whole, which does indeed create vast
>>excess 'savings' that take the form of financial market surpluses. Just
>>consider how much of this is being invested in the real estate bubble - The
>>Economist last year estimated that of a $70 trillion global property
>>valuation, about 2/5ths is overvaluation - and you get a sense of the scale
>>of the problem. Uneven development means the problem is worse in some
>>places, and sure the US draws in $2 bn each day from the rest of the world
>>(mainly East Asia), but that does not contradict the 'awash with capital'
>>problem.
>
>Do you mean that "saving" in a period can be greater than that part
>of output that isn't consumed, this "excess" taking the form of
>increased holdings of financial assets which are then available to
>finance investment in real estate?
Good question. And what do such "savings" represent, if they're far in excess of physical output of goods and services? Are they any more than fictitious?
Doug