Neo-liberalism is dead.

Submitted by Robert Logue on March 13, 2008 - 5:58pm.

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Neo-liberalism is dead. The current economic mess we find ourselves in is a direct result of its policies. That has been my opinion for a while. However, its one thing for a blatant lefty to say this, while it's quite another thing when senior members of the US Republican Party start saying it too. Here's a startling admission from US Treasury Secretary and a key member of the Bush administration, Henry Paulson:

"Paulson admits deregulation has failed us all"

Someone will have to break the news to King Harper soon. For those on the left, this is a bitter sweet victory. Now we must begin cleaning up after all the damage it has done.

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thought provoking qoute

Submitted by Jeff P. on May 29, 2008 - 12:03pm.

didn't know where to put this so I added it here.

"the conundrum, thus far unanswered, of achieving full employment without inflation" Arthur M. Schlesinger, Jr.

So... its impossible to have full employment in our current system without driving up the costs of materials? hmmm...

This problem is not a conundrum at all, rather, it is probably an inevitability of a system that requires extreme class disparities in order to operate. Without surplus labour, economic exploitation becomes far more difficult. just a thought.

Sec. of the Treasury Henry Paulson News Conference

Submitted by Jeff P. on March 20, 2008 - 5:02pm.

Um, ah, um, ooo, you're Fucked, I mean, don't worry, we're working on it...

"It's the job of regulators to come together, during times of stress, and address situations that help us protect our capital markets"

Capitalism: "Shit we did it again boys, but this was the worst time yet."

Government: "no prob, how much do you need? don't worry the folks in LA can wait."

"Participatory democracy postulates low energy technology. Only participatory democracy creates the conditions for rational technology." Ivan Illich http://radicalblogs.org/lpps

major recession or uber depression?

Submitted by Jeff P. on March 26, 2008 - 6:42am.

Fed Bailout of Bear Stearns First of its Kind Since Great Depression

The nation’s fifth largest investment bank Bear Stearns nearly
collapsed last week. It was saved only after the Federal Reserve took
extraordinary measures to help JPMorgan purchase the
eighty-five-year-old firm. The Fed has become the lender of last resort
for other investment banks in a move that marks one of the broadest
expansions of the Fed’s lending authority since the 1930s.
DemocracyNow! speaks with Nomi Prins, an author and former investment
banker at Bear Stearns, and Max Fraad Wolff, an economist and writer.

*edit - for some reason the link above sends the user to the front page of the LC. here is the link again - http://politube.org/show/493

"Participatory democracy postulates low energy technology. Only participatory democracy creates the conditions for rational technology." Ivan Illich
http://radicalblogs.org/lpps

bitter sweet indeed

Submitted by Jeff P. on March 13, 2008 - 8:37pm.

Unfortunately, as the article suggests, those who made large sums of money off this pyramid scheme, will be leaving a destroyed world economy in their wake. Where will they go once the majority of the population figures out who and what these people are? Well, the royal paradise of course (it's uncanny that the author of this piece is a Ron Paul supporter - he feels that it was only oil wealth that made Dubai happen - I would say Neoliberalism, moreover, capitalism was the root cause). Seems like all the big players have set up their retirement villa/island/luxury hotel there. The major investors in Dubai must know something the rest of the world doesn't to be taking such a massive gamble on a city designed to be uber expensive. will there actually be enough people visiting/moving there to keep it running? Most certaintly if that is where the world's ultra wealthy end up. Another added bonus, it is surrounded by vast areas of water and desert (easy to spot any poor folks trying make their way in) and its only a hop skip and a jump to refill their silver plated mercedes'.

Anyone interested in an easy step by step cartoon explanation on how the mortgage derivatives markets work as metioned by Paulson? I had no idea until a friend sent me this and now it makes sense (well, sort of - a lot more than it did before - hehe)

"Participatory democracy postulates low energy technology. Only participatory democracy creates the conditions for rational technology." Ivan Illich

http://radicalblogs.org/lpps

i loved it

Submitted by Robert Logue on March 13, 2008 - 9:55pm.

A good cartoon. It also hints at exactly how the dominoes are going to fall. Here's my guess:

1. Hedge funds - these higly leveraged, unregulated and exclusive versions of mutual funds are the most at risk to down turn and are thus like the canaries in a mine. Many have already gone belly up

2. Mortgage brokers - again, many are already recieve massive government bailouts

3. Banks - Northern rock has already been nationalized. Citigroup in the US is doomed.

4. Insurance industry - the insurance industry is not going to have enough cash to bail out the banks.

5. US bond market. - The insurance industry rests on government bonds (particularly US ones), because they are seen as riskless. As these companies have to cash in all their bonds to make their payouts, the bond market is going to take a nose dive. As this happens, the interest rate on US government debt will skyrocket.

6. Empire - the US looses its ability to pay for its empire. If it defaults on its debt, then the dollar goes to zero value and the US will have to deal with hyperinflation (Weimmar Republic style). Whether the US defaults on its debt depends on just how many bad loans there are out there. No one really knows the answer to that though.

'Poverty is the worst form of violence" - Gandhi