This is an interesting article. I still find it disturbingly amusing to watch the high priests of our corporate capitalist religion continue to cling to their dogmatic faith, even in the face of overwhelming empirical evidence of disaster. But then, it has nothing to do with ‘rationality’ or any kind of economic logic. It is just the age old human spiritual and psychological sickness of clinging and grasping to greed and ego gratification at the expense of the ‘other’, and capitalism in it’s most virulent form seems to have attained the distinction of being the finest, most effective ideology in propagandizing the morality play of transforming the notion of private vice into a public virtue.

The foolishness which continues to preach the wonders of the ‘invisible hand’ of the market place, leaves people never bothering to notice that the ‘invisible hand’ has been busy picking our pockets.

When CNBC abandoned infomercials in favor of programming from its international affiliate on Sunday night, it merely confirmed that much of the world now holds Wall Street in about the same regard as a Nigerian email scam or an Albanian pyramid scheme. The anchors and guests with the funny accents were quick to note the dollar’s decline and the general instability of the American financial system.

So while it’s good that Washington has finally woken up to the historic financial crisis on its hands, it still hasn’t confronted the ideological emergency. There’s more at stake here than just next quarter’s write-offs or next year’s growth rate. Laissez-faire capitalism has run headlong into a massive credibility problem.

And it’s really as simple as the difference between $84 and $2 per share. Efficient markets are those that can tell what something is worth. Ours can no longer make that claim, whether in regard to financial stocks or, by extension, about the much larger pool of private debt. The numbers Bear Stearns posted last year, the numbers it clung to until the bubble finally burst, proved in the end not to be worth the recycled paper they were printed on. Just like the mortgage debt that had been rated AAA but ended up at the bottom of the junk pile. Invest in America, where the numbers can be anything you want.

————-

It’s also an attempt to obscure the connection between costly crises and bailouts and vast private profits that have flowed to those who never really shouldered proportional risk. If our dynamic global marketplace is going to require taxpayer bailouts every decade or so, perhaps that ought to be taken into account when dividing the spoils from its lucky streaks.

————-

Poor Chinese, who discarded Soviet-style central planning for the market mechanisms beloved by us all. Now they sit on a powder keg of a stock-market bubble while contemplating belatedly that incompetent central planners could at least be shot, while even incompetent investment bankers get to keep their Bentleys.

Read The Complete Article