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.