Tuesday, September 30, 2008

Rentier capitalism and current financial crisis

Savings, pension plans, etc have flowed into the hands of rentier capitalists: hedge funds, venture capitalists backed by major financial firms, etc. The whole world economy is, to a great extent, controlled by rentier capitalists.

These rentier capitalists just destruct themselves, a hypothesis that Jan Toporowski has defended in his book "The end of finance. Capital Market inflation, financial derivatives, and pension fund capitalism".

Jan's hypotheses are interesting to those who think that financial economy is going to solve all the world's problems.

1 comment:

yagnavalkya said...

"Nope, its not me. First, I am hardly participating in forums, because it is very hard to 'enlighten' others' mistakes in a couple of posts. Second, I wudn't have said that thing: Rentier capitalism creates fictitious wealth. Hardly do we see capitalism today, except for rentier capitalism: pension funds, 401k, mutual funds, hedge funds, etc. The latter destruct themselves."