> On Mar 4, 2011, at 9:23 PM, michael perelman wrote:
>
>> Low profits did cause the shift to
>> financialization
>
> How?
>
> Profitability rose from 1982 to 1997, as financialization proceeded apace. Financialization assisted the rise in profitability, by forcing restructuring on the productive sector.
>
> Doug
The fact the current profitability rose could reflect the fact that the particular irrationality dominant in financial markets mistakes current profitability for profitability per se. All sorts of things done to enhance the former may erode the latter. What, for instance, was the effect on long term investment of the increasing influence of financial markets on the management of the productive sector?
Ted