The Financial Crisis Goes Beyond Finance

I just dashed off the first draft of a discussion of the financial crisis to be published in a South Asian publication. It is still very preliminary.  I could appreciate any pointers. Thanks.


3 comments so far

  1. ethan on

    Please send to me when finished & will post to Portside. ey

  2. ken on

    A very interesting article. However your division of goods into hard physically tangible goods versus those of the new economy should distinguish between valuable new products such as software for example, new computer chips, fiber optics and the financial instruments such as asset backed commercial paper of various types that was sold world wide and which was often so complicated that risk was really not easy to calculate and as your article shows enabled enormous profits in sales of paper based upon a real estate boom that bust. It is not the lightening of the economy per se that is a problem but the financial instruments and system that was supposed to keep on delivering profits indefinitely.

  3. mperelman on

    The problem is not the kind of goods that were produced, but rather, as I mentioned in one of the later commentaries, a sense of perspective. The good you mention were attractive because they faced very little competition. The promised off being the next Microsoft made investors throw money at them, while neglecting basic industry.

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