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... to commercial pursuit of long term investment opportunities ... there is also the net capital flows out of low income countries into high income countries, which is of course counter to the capital scarcity theory of how financial capital ought to flow, but makes perfect sense if you put yourself in the shoes of the wealthy in low income nations.

And of course, there are the capital flows still ongoing, even if not as great as in the earlier years of the decade, where Euro-zone based companies buy out Euro-zone assets owned by US-based companies ... that is a capital flow into the US, but rather than being based on any assessment of the long term appeal of the US as an investment proposition, is rather a legacy of past overseas investment by US firms.

On the moral responsibility of the Chinese government ... consequences for internal imperialism policies in Tibet, Inner Mongolia, Xinjiang ... that would be moral responsibility. Impact of a neo-mercantalist currency policy to export unemployment to a nation whose ruling elite seems positively eager to import unemployment ... given the vulnerability of many of those hardest hit, there's a clear moral responsibility there, but its hard to see how it can be laid at the feet of the Chinese.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Mon Jun 2nd, 2008 at 01:31:34 AM EST
[ Parent ]
Nearly bought it, but then something came to my mind. European banks (incl. CH) have lost more than 100 bn $ recently on dubious credit based assets - and the losses are only a fraction of the investment and we speak about banks, not about hedgefunds, which were also in this business. I know even privately people who have invested in US real estate.
So there is lots of evidence that there was a lot of private money inflows into the US before summer 2007. I have strong doubts that Europeans were buying back more Eurozone assetes than Americans bought new ones.


Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers
by Martin (weiser.mensch(at)googlemail.com) on Wed Jun 4th, 2008 at 07:24:45 PM EST
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