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September 23, 2010


Luis Enrique

it's not even necessarily a problem - if could just be indicative of a shift to a less capital intensive economy.

(I think it is a problem, mainly because I think outsourcing all the capital intensive stuff to China is going to come back and bite us one day).


Those OECD figures do highlight how (disastrously in my opinion) our housing investment is (esp compared with Germany's), not that this is the point NPN are making.

John H

I've heard it argued (e.g. David Harvey in The Enigma of Capital) that one reason for the "vast financial flows chas[ing] unproductive short-term profit" (rather than being used for "virtuous" investment) is precisely that there is a "dearth of investment opportunities", at least in western economies - so financial speculation becomes a means of absorbing surplus capital which would otherwise slosh around with nothing to do*. Emerging markets are another means.

(*You'll appreciate that I'm not an economist!)


I think we have to be careful when we say Germany is not financialised. The balance sheets of the Landesbanks suggest otherwise, for example.

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