I don't remember the context, but maybe he's referring to the overhang resulting from the over-investment of the late 1990s/2000 in the US (which is even mentioned in the official ECONOMIC REPORT OF THE PRESIDENT). That lead to excess capacity and excessive corporate debt, blocking new expansion (at least in manufacturing).
Jim Devine [EMAIL PROTECTED] & http://bellarmine.lmu.edu/~jdevine
> -----Original Message-----
> From: ken hanly [mailto:[EMAIL PROTECTED]]
> Sent: Tuesday, August 20, 2002 10:27 AM
> To: pen
> Subject: [PEN-L:29649] Investment Overhang
>
>
> Could someone explain what Stiglitz means when he speaks of
> an investment
> overhang and how it is a problem? Or is it an investment
> hangover when the
> champagne no longer flows and the bubbles burst?
>
> Cheers, Ken Hanly
>
