One more sound argument to not listen to the galactic- ly stupid.

1 post / 0 new

http://www.guardian.co.uk/commentisfree/2012/may/20/observer-editorial-goverments-calamitous-economic-policy

...

At the heart of this calamitous strategy is a wholesale misdiagnosis of how the market economy functions and a complete failure to understand why the financial crisis took place, the profundity of its impact and its implications for policy. For a generation, business and finance, cheered on by US neoconservatives and free market fundamentalists, have argued that the less capitalism is governed, regulated and shaped by the state, the better it works. Markets do everything best – managing business and systemic risk, innovating, investing, organising executive reward – without the intervention of the supposed dead hand of the state and without any acknowledgement of wider social obligations.

The lesson of the financial crisis is that this is complete hokum that serves the political and personal interests of the very rich. It has been an intellectual carapace to permit the creation of dynastic personal fortunes while dismantling the social contract that underpins the lives of millions. Yet it has been this flyblown thinking that has informed British monetary, fiscal and financial policy for the last two years – uniting the governor of the Bank of England with the equally bewildered George Osborne. Both are at sea.

The lesson of the financial crisis is unambiguous. Risk – the existence of incalculable unknowns – cannot be handled by markets alone. It has to be socialised by the state, otherwise we encounter chronically low levels of investment and innovation, along with periodic systemic crises, the core message of John Maynard Keynes. For 20 years, the titans of high finance assured governments, central banks and regulators that no longer did they have to worry their bureaucratic heads over systemic risk in finance, the issue that had created financial crises regularly in the past.

...

Sorry, watched the LA Kings rob the Coyotes tonight, and this aricle from the Guardian has been on my mind for a few days...

Phaedrus76's picture
Phaedrus76
Joined:
Sep. 14, 2010 8:21 pm

Currently Chatting

Who Should an Economy Serve?

The top one percent own half of all the world's assets. In stark contrast, the bottom fifty percent of the world owns less than one percent. According to the 2014 Global Wealth Report from Credit Suisse, global inequality has surged since the 2008 financial collapse. The report explains that while global wealth has more than doubled since the year 2000, the vast majority of overall growth has gone to those who were already wealthy.

Powered by Pressflow, an open source content management system