Re: [Marxism] fiasco

["guava tree" <theguavatree@xxxxxxxxx>]

the focus on the low interest rate doesn't make so much sense as the prime
etiology of this crisis, especially when one considers how ridiculously high
interest rates in the late 70s, early 80s was one of the factors
contributing to the S&L real estate crisis.

One angle I'm trying to mull over more now is how the extreme cuts in taxes
and financial deregulation of the Reagan and Bush regimes (as artesian
writes "Improved" conditions of profit share aggrandizement) freed up so
much surplus profit that one is tempted to consider that the "General Law of
Capitalist Accumulation" over the past 30 years is extreme overinvestment in
a sector of the economy that can't create surplus value in the traditional
sense: real estate Ponzi finance. The idea for investors being to get out
before the cops show up and stick the taxpayers with the old maid card. The
conservative estimate for the S&L bailout from 1986-1995 is $153 billion, so
the proposed $700 billion bailout proposed yesterday sounds about right.
Marx focuses so much on surplus population and how this is tied to
capitalist accumulation and indeed one can see this in the post-NATFA surge
in illegal immigration to the US and many other effect of neoliberalism, but
the two key crisis of US capitalism recently that have required an
embarrassing reversal on free market principles and a huge government
bailout were tied directly to huge amounts of capital invested in real
estate that at the end of the day is maybe worth 10, 20 cents on the dollar.
________________________________________________
YOU MUST clip all extraneous text when replying to a message.
Send list submissions to: Marxism@xxxxxxxxxxxxxxxxxxx
Set your options at: 
http://lists.econ.utah.edu/mailman/options/marxism/archive%40archives.econ.utah.edu