From: Jerry Levy (Gerald_A_Levy@MSN.COM)
Date: Thu Feb 09 2006 - 07:14:55 EST
> Another QUESTION: > Bubbles reveal a deviation (quantitative difference) between VALUE > and PRICE or between PRICE of production and market PRICE? Hello Giannus! When one looks at the contemporary world capitalist economy, is price of production a stylized fact which tendencially can be observed or a fiction? I have no idea what it would mean to say, more concretely, that there was a PoP for "high tech" and Internet companies when there was a bubble in those sectors. Do you? What would it mean, in reference to a housing bubble, to speak of a PoP for new and _used_ houses? There is certainly speculation and a credit-financed boom in this sector (and one could claim that it could be related to the average RRI on alternative investments), but what evidence is there that there is a PoP in the used housing market? How is that determined? In solidarity, Jerry PS to Michael P: _which section_ of the chapter on "fictitious capital and the crisis theory" speaks to both the question I raised and that raised by Giannus?
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