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Re: [Pen-l] What is the Crisis About? Fictitious Capital or the Destruction of Wealth?

Yes.  And the decoupling is a very important component.

Anthony D'Costa wrote: 
Traditionally wealth was always defined in terms of tangible assets,
gold for example.  While the value of gold or for that matter machines
may change nevertheless they are nothing like paper wealth (or
fictitious capital), though I have to admit that these days all that
is solid also melts into thin air.  In fact when we talk about
financial sphere are we not really talking about stock market (though
there are other elements to this)?  After all the speculative element
in stock markets tends to decouple stock market valuation
substantially from initial paid up capital.  Is this not the emergence
of fictitious capital, which reproduces itself in capitalist
expansionary phase?  From this angle it seems the Indian billionaires
have lost FC not wealth.




--
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com
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