[DEBATE] : (Fwd) US capitalist crisis unfolds

[Yoshie Furuhashi]

On 9/3/07, Doug Henwood <dhenwood at panix.com> wrote:
> Is a recession the same as a crisis?
>
> In any case, I've got my own analysis of this at:
>
> <http://www.leftbusinessobserver.com/Turmoil.html>.

You say that "The root of the present drama is in the huge housing
mania—and the financial adventurism that surrounded it—that took hold
of the U.S. in the mid-1990s and accelerated after the stock market
collapsed in 2000–1."  But even neoclassical economists would go at
least as far as noting that the "root" is "the nation's current
account imbalance" and the "global savings glut": "In particular,
during the past few years, the key asset-price effects of the global
saving glut appear to have occurred in the market for residential
investment, as low mortgage rates have supported record levels of home
construction and strong gains in housing prices." (at
<http://www.federalreserve.gov/boarddocs/speeches/2005/200503102/default.htm>).
 Shouldn't they be explained?
-- 
Yoshie