On 2/6/2011 2:41 PM, Marv Gandall wrote:
>
>> 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."
They're saying real investment rates fell. They're not saying that induced capitalists to "switch" to financial speculation. (Which, again, makes no logical sense.)
BTW, in a chart in their McKinsey report they show global investment/GDP falling from an average of about (eyeballing) 25% in the 70's to about 22.5% since 1980. That will affect interest rates but, contra Harvey et. al., it doesn't seem like capitalism in its throes.
SA