Re: [OPE-L] stocks versus bonds in the global market

From: glevy@PRATT.EDU
Date: Fri Oct 19 2007 - 09:21:51 EDT


> I assume the figures refer to all types of bonds traded in domestic and
> international markets, in current dollar terms. I haven't really cracked
> the bond problem yet, I am working on it still. I really need much longer
> time-series.

Hi Jurriaan:

I think you need to disaggregate the figures so bonds issued by states
(including federal and local) are separate from the figures on corporate
bonds.  I'm sure this has been done by others.  In any event, I think you
need those figures to develop a fuller analysis of the meaning of the
growth of bond ownership in relation to the ownership of corporate stocks.
 There are many (inter-related) complex issues at work here including the
fiscal crisis (and hence, budgetary policies) of national and urban
governments (which is related to the policies of Neo-Liberalism and the
policies promoted by the World Bank and the IMF), the rate of inflation in
selected parts of the world capitalist economy (and monetary policies of
central banks), etc.  The struggle _against_ Neo-Liberalism is related as
well since that would tend to lead to a scaling back of state austerity
policies, yet also a need for more funds to meet state expenditures.  This
would be the case even where states responded by increasing corporate
taxes and other forms of progressive taxes since that
(to the extent that it would lead to a decline in after-tax corporate
profitability) would lead many investors to look for alternative ways of
investing their funds (only one of which would be investing in public
bonds).

btw (on a related note), does anyone on the list know of a good Marxian
analysis of the monetarist "crowding-out effect"?

In solidarity, Jerry


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