Financial crisis linked to decline in profit, leading to systemic collapse.
The article looks at how changes in profit rates, financialization, and crises are connected in the US from 1929 to 2008. It found that a drop in profit rates is linked to crises, but not to inflation or firm cash assets. The research supports the idea that crises follow financialization, where firms increase cash assets, leading to systemic crises within capitalist cycles.