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A CasP Model of the Stock Market

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  • Bichler, Shimshon
  • Nitzan, Jonathan

Abstract

Most explanations of stock market booms and busts are based on contrasting the underlying ‘fundamental’ logic of the economy with the exogenous, non-economic factors that presumably distort it. Our paper offers a radically different model, examining the stock market not from the mechanical viewpoint of a distorted economy, but from the dialectical perspective of capitalized power. The model demonstrates that (1) the valuation of equities represents capitalized power; (2) capitalized power is dialectically intertwined with systemic fear; and (3) systemic fear and capitalized power are mediated through strategic sabotage. This triangular model, we posit, can offer a basis for examining the asymptotes, or limits, of capitalized power and the ways in which these asymptotes relate to the historical and ongoing transformation of the capitalist mode of power.

Suggested Citation

  • Bichler, Shimshon & Nitzan, Jonathan, 2016. "A CasP Model of the Stock Market," Working Papers on Capital as Power 2016/07, Capital As Power - Toward a New Cosmology of Capitalism.
  • Handle: RePEc:zbw:capwps:201607
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    References listed on IDEAS

    as
    1. Debailleul, Corentin & Bichler, Shimshon & Nitzan, Jonathan, 2016. "Theory and Praxis, Theory and Practice, Practical Theory," Working Papers on Capital as Power 2016/01, Capital As Power - Toward a New Cosmology of Capitalism.
    2. Carmen M. Reinhart & Kenneth S. Rogoff, 2014. "This Time is Different: A Panoramic View of Eight Centuries of Financial Crises," Annals of Economics and Finance, Society for AEF, vol. 15(2), pages 1065-1188, November.
    3. Harcourt,G. C., 1972. "Some Cambridge Controversies in the Theory of Capital," Cambridge Books, Cambridge University Press, number 9780521096720.
    4. Veblen, Thorstein, 1904. "Theory of Business Enterprise," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1904.
    5. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters,in: This Time Is Different: Eight Centuries of Financial Folly Princeton University Press.
    6. Bichler, Shimshon & Nitzan, Jonathan, 2012. "Capital as Power: Toward a New Cosmology of Capitalism," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 65-84.
    7. repec:zbw:esthes:157989 is not listed on IDEAS
    8. repec:zbw:caprev:157913 is not listed on IDEAS
    9. Nitzan, Jonathan, 1992. "Inflation As Restructuring. A Theoretical and Empirical Account of the U.S. Experience," EconStor Theses, ZBW - German National Library of Economics, number 157989.
    10. Bichler, Shimshon & Nitzan, Jonathan, 2010. "Systemic Fear, Modern Finance and the Future of Capitalism," EconStor Preprints 157830, ZBW - German National Library of Economics.
    11. Bichler, Shimshon & Nitzan, Jonathan, 2015. "Capital Accumulation: Fiction and Reality," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 47-68.
    12. Nitzan, Jonathan, 1989. "Price and Quantity Measurements: Theoretical Biases in Empirical Procedures," EconStor Preprints 157849, ZBW - German National Library of Economics.
    13. repec:zbw:espost:157781 is not listed on IDEAS
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    More about this item

    Keywords

    capital as power; crisis; mismatch thesis; stock market; strategic sabotage; systemic fear; valuation;

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