> Carrol gave a couple of examples. GE, the auto manufacturers, even
> retailers often only make their profits on warranties. Seth, you are
> right that it does not make sense. Neither does capitalism.
>
> On Mon, Aug 8, 2011 at 8:21 PM, Carrol Cox<cbcox at ilstu.edu> wrote:
>> I was trying to remember the other day how Greyhound had shifted its
>> business. U.S. Steel turned itself into Marathon and sold the steel
>> business. The (original) Greyhound did the same, but I don't know or can't
>> remember what it turned itself into.
This is a line peddled by Harvey and Brenner. I have never seen any evidence given for it.
When I ask for evidence, none is ever given. When I provide contrary evidence, it's ignored. People seem to repeat this line because they really want to believe it.
Your argument was:
> When few good prospects for real investment exist, people look for
> financial opportunities.
What makes you think this is true? Is it a hunch? A hypothesis? Just some barstool shit-shooting?
I'm asking you as an economist: If this were true, what sort of pattern would we expect to find in the data?
SA