[lbo-talk] What is the Crisis About? Fictitious Capital or the Destruction of Wealth?

[Michael Perelman]

Good question.  The problem is that the distortions caused by finance 
grow during the course of the cycle.  The distortions influence investment 
which cause more distortion until crunch time brings everything more in 
line with the underlying productive system.

On Wed, Mar 11, 2009 at 12:47:45PM -0400, SA wrote:
>
> I don't understand what the specific argument is here. Financial wealth is 
> always an "illusion" under capitalism - when there's a crash and when there 
> isn't a crash. So how can it explain this crash?
>
> SA
> ___________________________________
> http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk

-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com