[Marxism] theses on the economic crisis

Rakesh Bhandari bhandari at berkeley.edu
Sat Nov 28 18:44:11 MST 2009


So far, all this crisis has produced are calls for greater capital 
reserves, for requiring that the originating institutions keep some 
percentage of the mortgage loans on their  books (i.e. regulating the 
securitization process), and for bringing the shadow banking sector 
under some of the extant regulations. At  fringe there are some calls 
for a breaking up of the banks, a revival of Glass Steagall divisions 
among financial institutions and a temporary nationalization of some of 
the banks in place of the loan guarantees and equity purchases that (are 
meant to) give the illusion that the public is not bailing out the banks 
. But all of this is meant to revive capitalism via a regulation of some 
financial entitites. This is clearly not a crisis of capitalism.  Even 
the Economist is raving about John Cassidy's (rather brilliantly 
written) book on market failure.
rb




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