Michael Perelman wrote:
holding down wages, which restricts the profitability of potential real investments. I cannot be certain but this kind of bubble may prove more intractable than a typical stock market crash.
This I don't get, Michael. Holding down wages is the *only* way to undergird ficitious capital formation with surplus value, no? Isn't the question instead whether the inverse pyramid of fictitious capital that builds up unevenly in various sectors (the NYSE today, real estate yesterday, energy markets tomorrow) can continue to be shuttled here and there, growing ever larger and more precarious, so that a 'typical stock market crash' is thus averted through loose money, low interest rates and yet more bubbling elsewhere, as seems to have been the crisis-management strategy since Mexico in 1982, or the Dow crash of 1987, or S&Ls in 1989 and real estate in 1990, emerging markets from 1995-2002, the dot.com from 2000, etc etc etc? And then it's a matter of whether the US current account deficit can continue its rise without risk of a full run on the dollar?
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