THE AGE OF ASSET BUBBLES IS HERE TO STAY AS LONG AS THERE IS EXCESS LIQUIDITY FOR INTERNATIONAL CAPITAL...AND LITTLE OF NO POWER IN THE HANDS OF LABOR OR WORKERS...
THE PROBLEM IS THAT EVEN THE "PRODUCTIVE" SECTORS...LIKE INTERNATIONAL CAPITAL...CAN HAVE TOO MUCH LIQUIDITY... THIS LEADS TO CLASSIC OVER INVESTMENT AND OVER PRODUCTION...
OF COURSE OVER PRODUCTION IS FIRST SEEN AS "GOOD" BECAUSE IT'S ANTI-INFLATIONARY....AND LOW WAGE WORKERS CAN STILL "BUY THINGS."
BUT EVENTUALLY OVER PRODUCTION MEANS THAT CAPITAL CAN NOT MAKE MONEY...THE CAPITAL MOVES INTO COMMODITIES...AND HIGHER COMMODITIES CAUSE INFLATION IN THE REAL ECONOMY...NOT JUST IN THE "ASSET ECONOMY."
THEN...EVENTUALLY WORKERS NEED MORE WAGES TO SURVIVE...AND CAPTIAL BECOMES EVEN LESS PROFITABLE... ETC...
THE POINT IS THAT EVEN "GOOD BUBBLES" IN ASSETS...HAVE BAD CONSEQUENCES DOWN THE ROAD...
WE ARE IN THE GOLDEN AGE OF ASSET BUBBLES NOW...BUT THIS IS THE FINAL DAZE...
A NEW PROGRESSIVISM WILL TAKE HOLD AFTER 2008...NOT BECAUSE IT'S "RIGHT" BUT BECAUSE THERE WILL BE NO OTHER CHOICE...
BUBBLES END NOT ON MORAL GROUNDS...BUT BECAUSE THEY HAVE NOWHERE ELSE TO GO...
AS IN CHESS...CHECK IS DIFFERENT FROM... CHECKMATE...!
