[Marxism] "no 'credit crunch'" The real crisis is in the realeconomy
sartesian at earthlink.net
Fri Dec 19 14:19:17 MST 2008
The source of this info is a study done by an economist for the Minneapolis
Federal Reserve, published in Oct 2008, and is based on flow of funds
figures before the Lehman bankruptcy.
Look at those figures again in the flow of funds report issued by the Fed on
Dec 11 that includes data from after Lehman bankruptcy-- what a difference a
day, and a quarter, makes.
The author of the paper provides his own hedge when he states only 20% of
non-financial debt is held by banks. Indeed. But the issue is not
non-financial debt; its the ability of banks and financial institutions to
parse the available profits, divert some of the revenue stream to
themselves-- after 2002, the banks concentrated on mortgage instruments--
attacking the 'v' portion of capitalist reproduction. Declining rates of
profit for US industries triggered another burst of "securitization" in late
2006, 2007 that produced the sub-prime implosion.
----- Original Message -----
From: "Darrel Furlotte" <darrel.furlotte at gmail.com>
To: <sartesian at earthlink.net>
Cc: <SocialistProject at yahoogroups.ca>; <SV-Circle at yahoogroups.com>
Sent: Friday, December 19, 2008 1:06 PM
Subject: [Marxism] "no 'credit crunch'" The real crisis is in the
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