On 2011-02-06, at 11:57 AM, SA wrote:
> On 2/6/2011 10:23 AM, Marv Gandall wrote:
>
>> The financialization of Western economies, characterized by engineered low interest rates and speculative investment in stocks, bonds, and a bewildering array of derivative products, was an outgrowth of the shrinkage of profitable investment opportunities in the "real" economy of plant, equipment, infrastructure and other hard assets.
>
> This is the Harvey/Brenner/Fitch line. It's not what these authors are saying.
How much are they departing from that thesis?
"Capital became plentiful, and long-term interest rates declined too – primarily as a result of falling investment in assets such as infrastructure and machinery. Global investment fell dramatically, creating a fall in the demand for capital substantially larger than the growth in supply created by Asian current account surpluses."