10 days That Changed Capitalism
The world has changed. The market fundamentalism that has dominated our economics over last three decades has been unmasked as a sham, deemed useless by the guardian of the integrity of finance itself, the Federal Reserve.
Without a vote of the Congress or a public debate, the Bush administration and the Federal Reserve have made government the guarantor of the shadow banking system – the unregulated, unhinged hedge funds and investment houses whose compulsive excesses now threaten the global economy. They say necessity is the mother of invention, but we seen only a part of the new machine, not surprisingly, the part that buttresses Wall Street. They have scrambled to put this together in an emergency, behind closed doors, without a hint of the necessary regulatory changes that must rationally accompany such guarantees.
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After studying economics for 6 years, which availed me of the merits of free markets, I have circled back to the conclusion that, overall, Democrats will benefit most people in the long run far more than Republicans. I chronicle my observations in this blog.
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Friday, March 28, 2008
10 days That Changed Capitalism
Aside from the fact this week's events seem not much different in net effect from the S&L Bailout in the late '80's, I would concur that it undercuts just about every sweeping statement about the Market.
Labels:
Capitalism,
FED,
Finance
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