David Harvey: Greed and crisis

Issue section: 

The interview with David Harvey was very interesting (Interview, Socialist Review, April 2009).

However, there is one area that was not fully explored: why, especially during Alan Greenspan's tenure as chair of the Federal Reserve, did the housing sector become the second largest sector in the economy, replacing the manufacturing sector?

Harvey exposed the financial sector's expansionist role in providing credit first to the builders who built an insane number of houses and then to the householders who purchased them. This obviously allowed the financial sector to further expand its power and wealth.

The issue that was not touched upon was the fact that an expanded housing sector was also needed to provide employment to the displaced workers whose jobs were shipped abroad.

However, at the end it failed miserably, because it did not take into account the excessive greed that is in the DNA of the people who were involved.

Kurt Eren
Massachussetts, US