The underlying logic being adopted by the Marx-Hoover-Hayek axis isrelatively simple. It is:
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The market's price signals are right.
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The market's price signals are saying that the economy has "toomuch" capital.
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Something must have gone wrong in the past to create this "toomuch" capital.For Marx the "something" is increasing returns to scale as the fact thatthe biggest producers are the most efficient leads all businesses toexpand even though demand will then allow only a few to survive; forHayek it is usually fractional-reserve banking and the government'sprinting press backed up by the legal restrictions that support fiat moneythat creates excessive credit and the fiction that the economy can have alarger-than-sustainable capital stock; for Hoover and Mellon it is the sinsof feckless and un-Calvinist speculators who want to get something fornothing. For all there is nothing--within the current mode of productionat least--that can be done except to suffer until the economy's capitalstock has once again fallen back to its sustainable value.

Later, he goes on to disagree with the notion that too much capital (by which I wonder if he means speculative debt and fake money) has been created.