On 3/2/07, troy cochrane <[EMAIL PROTECTED]> wrote:
The valuations as determined by the machinations of the stock market are how capitalists understand their own successes and failures. It is the realm where owners pass judgment on all manner of social events and their expected impact upon the earnings of capital. Recently the value of Toyota has been soaring, while GM is famously in the doldrums.
but serious owners of capital only look at _long term_ changes of each individual stock, relative to others. That's because they know (contrary to the academic theory of the efficient stock market) that stock price changes are notoriously flaky. They often don't reflect what the cappos care about, i.e., the fundamentals.
Activists/revolutionaries/leftists should try to understand what is going on beneath these movements.
J.M. Keynes had a good discussion of stock bubbles, i.e., when stock prices generally deviate from fundamentals.
One of the most important lessons we can learn is that the capitalist class is far from homogeneous.
I think I knew that already. -- Jim Devine / "The truth is more important than the facts." -- Frank Lloyd Wright
