As the stock market goes plop again (that big pile of cash to the banks hasn’t fixed anything), and I wonder why, this article catches my eye.
the larger story is that the global economy is fast popping its latest monetary bubble, the one over the last 14 months in commodity prices and non-dollar currencies.
Those bubbles are:
- housing prices (2002-2007)
- flooding the market with currency to avert the credit crunch (since August 2007)
- commodity prices (e.g. the $150/barrel oil and the riot-causing food price hikes)
So there is no “fix,” only delaying the effects. Playing pass the parcel with the nasty consequences of deregulation and free market absolutism. The banks have won the jackpot with their public funds bailout in return for token gestures of contrition. What other costs are going to be passed onto us to go with our debt, job losses, and higher food prices?
Saw an appropriate slogan the other day:
Capitalism isn’t in crisis, capitalism is crisis.
So we’re in a recession but some comedians are having a field day. Like Mark Steel here and here.
the issue of compensation when it comes to characters like Fred Goodwin, who’ve been removed from their posts at the bank. The debate about how much these people should pay us for robbing the place dry would keep the country engrossed for years.
I’m not sure what makes it official that the recession’s started, but one way of measuring the start is when the government first insists there ARE lots of vacancies, but the unemployed need to be more flexible, and better at applying for jobs, as Gordon Brown stated this week.(…)
but never a truer word spoken than in jest (or whatever the quote is):
perhaps anyone who finds themselves unemployed, or homeless or otherwise broke as a result of this recession, should march to the House of Commons and announce “I demand to be nationalised. Bail me out for a million and I can carry on, because if I go under, who knows WHAT I might bring down with me.”
I received this in an email:
Economic Crisis Demonstration
Edinburgh Friday 24th. Gather from 5pm.
An act of mass public expression against the deepening economic crisis, dodgy bailout, and the severe lack of economic assistance for ordinary people, is set to happen in Edinburgh City Centre at 5pm on Friday 24th of October.
We are paying £537bn to bail out the banks, 5 times the annual spending on the NHS. Our jobs, homes, wages and public services are all at risk from this economic crisis. People are rightly demanding – “Where is OUR bail-out?
Gather from 5pm: HBOS headquarters, top of the mound, near the High Court.
People can then write down their anger, worries, and *demands*, and deposit them in a large black box. The demonstration will then proceed down the royal mile to parliament, where the box will be delivered.
…are the ordinary people who stand to lose their jobs in the recoil from the banks’ cowboy behaviour. People like David Salt featured here.
Sat alone at home with, by his own admission, not much to do, Salt believes that banks offering unrealistic credit are ultimately responsible for his job loss.
That makes the bail-out even more painful, he says.
“The government is pumping all these billions into financial institutions so they can lend us money again. Can’t they give me a few hundred quid so I can retrain on a computer course?”
The bailout of banks might mean that they don’t go to the wall but they are experts in making others suffer for their mistakes. The more that they carry on business as usual after this debacle, the bigger the next crisis will be. Pumping in more credit to the system isn’t going to solve underlying economic problems.