RE: [OPE] Bernanke's Bubble Laboratory

Date: Thu May 22 2008 - 14:36:43 EDT

> In the US especially, a very large fraction of fixed equipment used in production is not owned by the producers, but leased 
Hi Jurriaan:
According to the most recent statistics, what is that fraction (or %)?
In solidarity, Jerry
> - leasing is tax 
> deductible and does not appear as a debt or a liability; the IRS does not regard an operating lease as a purchase, but rather as a tax-deductible 
> overhead expense. Consequently it is often more profitable to rent rather than to buy. Conversely, in rentier capitalism the ownership of an asset is 
> only a collateral for a vastly larger sum of borrowed capital, which is used to extract an income much larger than the cost of borrowing. 

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