[lbo-talk] Goodbye to the export of surplus capital?

Doug Henwood dhenwood at panix.com
Mon Feb 7 11:18:36 PST 2011


On Feb 7, 2011, at 2:03 PM, SA wrote:


> On 2/7/2011 1:49 PM, Doug Henwood wrote:
>
>> This stuff is circular and feeds on itself, so it's hard to identify a first cause. But financial assets were relatively minimal in the 1950s. And nonfin corps were transferring about 20% of internal funds to shareholders. Since 2000, it's more than three times that.
>>
>> Why was there pressure for dereg and innovation?
>
> Good question. See, this is why we need historians! I feel validated!

Schumpeter in 1939: "It is one of the most characteristic features of the financial side of capitalist evolution so to ‘mobilize’ all, even the longest, maturities as to make any commitment to a promise of future balances amenable to being in turn financed by any sort of funds and especially by funds available for short time, even overnight, only. This is not mere technique. This is part of the core of the capitalist process."



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