Read transcript of Paul Jay interview at Credit Writedowns
The Giant 21st Century Asset Grab
by Michael Hudson
Michael Husdon explains how the phase of Ponzi finance described by Minsky developed and is still in full swing, even after the crisis this resulted in.
Interestingly, it follows Ravi Batra's historical scenario. After WWII, military people (warriors) ran companies, based on organization and planning. After that, in the Sixties and Seventies, experts in production (intellectuals) ran companies based on knowledge, and beginning in the Eighties financial managers (acquisitors) took the reins and began to feed off prior gains parasitically, running companies down in the process. Instead of growing production, financial managers sought to increase economic rent.