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Thank you very much for your question. Looking at the paper, I see that I did not make the connection very clearly. Here's what's going on: increasing capital intensity generally puts the cost of plant and equipment beyond the means of an individual person. The most rapid period of growth of the stock market in United States came with the expansion of railroads. The market values of financial assets becomes dependent upon speculative behavior, leading to a disconnect between the financial system and the underlying real economy. The resulting fictitious values give signals to capital that eventually create crises. On Sat, Nov 6, 2010 at 2:07 PM, Serhiy Kutnii <mnkuts...@gmail.com> wrote: > > The part about the connection between constant > capital and financialization seems too short and thus a bit obscure. > -- Michael Perelman Economics Department California State University Chico, CA 95929 530 898 5321 fax 530 898 5901 http://michaelperelman.wordpress.com ________________________________________________ Send list submissions to: Marxism@lists.econ.utah.edu Set your options at: http://lists.econ.utah.edu/mailman/options/marxism/archive%40mail-archive.com
