Barnet Wagman wrote, >It wouldn't surprise me at all if world financial/economic woes yield further >capital flight to >the U.S. and a consequent stock market rebound, independent of what's happenning >in >the real U.S. economy. Louis Proyect wrote, >I would go even further than this. Again, tipping my hat to Harry Shutt, I >would argue that the stock market speculative bubble of the 1990s was a >sign of capitalism's ill health. Jim Devine wrote, >In addition, as Louis P. pointed out, a stock market boom can be a result >of a shortage of real investment opportunities or increased insecurity >outside of Wall Street. Not to disagree with any of the above, but only to suggest a further dimension: as I have argued before, the stock market bubble of the 1990s could also have been an expression of two factors unrelated to the "health" of the domestic economy or to the international events. Those factors are the demographic structure of the U.S. population and the institutional arrangements for automatically channelling a substantial portion of employment earnings into the securities markets (pension and retirement savings). This is not "hot" money at all. It could be best described as zombie money, flowing into the markets as dependably as a payroll deduction. It's my contention that the very un-volatility of this retirement savings money gives a unique dynamic to the unfolding of the current crisis. My gut feeling is that it makes this one a loooooong, slow suffocating crisis. Also, it's worth noting that this crisis is thoroughly and unquestionably made in the USA. The so-called enduring "strength" of the U.S. economy reflects the unexceptional fact that the periphery is always the first to feel the pain. Regards, Tom Walker ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ #408 1035 Pacific St. Vancouver, B.C. V6E 4G7 [EMAIL PROTECTED] (604) 669-3286 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ The TimeWork Web: http://www.vcn.bc.ca/timework/
