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Recent Articles about North America / Mexico EconomyUn México en las calles, un México en rabia Jan 12 17 El atentado de Orlando y las opciones presidenciales de los EUA Jun 21 16 The Periodic Crises of Market Economies
north america / mexico |
economy |
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Sunday October 12, 2008 05:13 by Randy (personal capacity) - supporter of the Captal Terminus Collective, NEFAC
The US economy is in crisis. Construction has halted and credit is scarce. Companies remaining in business slash their workforces. The stock market is turbulent, even as Congress bails out the bankers. (Meanwhile, working homeowners and renters are left to fend for ourselves, indeed to finance the bailout of the banks.) Corporate news outlets are careful to avoid alarmist tones when reporting on economics, lest they cause panic in the marketplace. Yet, for the first time in memory, parallels are being drawn between current events and those that preceded the Great Depression of the 1930's. |
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Jump To Comment: 2 1I've been writing articles on the crisis which people may find of interest. They can be found here:
http://anarchism.pageabode.com/cat/anarcho
Latest post is on Paul Krugman getting the so-called Nobel prize for economics, but there are plenty of others of the credit crunch and related developments (plus lots of other things).
Long long years ago capitalists owned the capital they apply for their businesses. As results of the concentration of capital, and change in the structure of the capitalist class, more and more capital is managed by smaller and smaller number of businesses. As result - the financial system mediate between the owners of savings and small capitalists and the big firms.
As the power of the two sides is not equal, we see smaller percent of profits to the smaller holder of capital.
The huge increase of profits resulting from the neo-capitalism and globalization, increase immensely the load and role of the international financial system.
We also see long term investments of capital based on shorter term credit (which is cheaper).
In addition, special to the present crisis, we see the haphazard credit for homes in US mainly in procedures that were sure to make a short live bobble with imminent disaster under the nous of the central authorities.
As result of the exploding of the "subframe mortgages" bobble, on the back ground of US chronic budget deficits and speculative mounting of prices of oil, and other commodities, the flow of capital through the financial system was abruptly slowed down.
It will take lot of efforts to make the flow of capital (and credit) to return to normal. It will involve lot of adjustments as well as significant increase in the concentration of capital, and change in balance of power among holders of big capital inside and outside US.