----- Original Message -----
From: "Laurent GUERBY" <[EMAIL PROTECTED]>
To: "Progressive Economics" <[email protected]>
Sent: Monday, March 24, 2008 6:52 AM
Subject: Re: [Pen-l] Is this true
On Mon, 2008-03-24 at 09:14 -0400, Shane Mage wrote:
Of that $11 trillion most is not "subprime." So the question is how
much equity underlies that $11 trillion, certainly not as little as
100%! And so the potential writedown has to be much less than that
$1.375 trillion.
The question for this crisis is "subprime or not" but "equity or not".
In order to make this assesment, should it not be requisite to define equity
first?
How do Marxists define equity? What is its value, with respect to labour
value?
What happens, for instance, when such "equity" is spent on current
production output, in terms of an integrated theory of (asset) inflation?
I'd like to know if Marxism has ever gotten around to answer these questions
in a substantially different way than mainstream or other heterodox
approaches. IMHO, in order to stand on firm ground with prescriptions for
the current financial mess, it is imperative to have those answers ready.
I just finished writing a short paper called "Questioning the ontology of
conventional economics", that puts in doubt the ability of all current
economic theories to arrive at non-trivial answers to the above. I'd very
much appreciate comments and/or setting me straight.
http://www.vcn.bc.ca/~vertegaa/ontology.pdf
John V
Even prime borrowers don't like to pay debt which is more than
the value of their house and no hope having the value go back fast
enough. Some of them will keep paying, some will likely try hard not to
pay which means huge legal fees for bank and big stress on the justice
system given the number of households with negative equity. I read 8
millions households somewhere and the number is going up when house
prices go down.
Laurent
http://guerby.org/blog/
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