A reason for the crisis

The guess is that the financial crisis and economic downturn wont go away any time soon. The consensus is that it will take several years to undo itself.

There are several reason why this crisis occurred, most of them listed before. But one that is never or hardly mentioned is the fact that the economies of the world have overproduced and there is to much stuff out there. The excess and oversupply will take time to be consumed and dealt with. This is a worry Marx had about capitalism, a natural penchant for producing and producing. Marx thought that at some point it would produce too much. Well, the world has. Perhaps there is just to much capitalism occurring in the world.

I think a classic example of overproduction is Dubai. Who is going to occupy all the real estate developed there? It is a place that is competing for the same business and entertainment dollar that a number of other centers around the world are. There just isn't enough consumers in the world to soak all this up. Someone once said, if you build it they will come. However, there is no yet enough prosperity around to absorb the offerings of Dubai and the numerous place like it.