As I've argued before, it isn't possible to bail everybody out, they just bail out those who are currently considered to represent a "systemic risk".
Even then, as Angela Merkel points out, the supply of additional cheap money to the financial institutions and investors cannot guarantee that the same sort of financial problems will not occur again in five years time. Investors just keep capitalizing on the new borrowed assets, that is all.
However, the biggest "systemic risk" is the continuing fall and growing disparity in real wages, limiting final expenditure, and they cannot or will not do much about that.
Modern rentier capitalism rewards, principally, property and the trade in already existing assets, not labour and industrial entrepreneurship, i.e. it is anti-labour and anti-entrepreneurship, but this undermines the very basis of the whole system, since labour and industrial entrepreneurship are the ultimate source of the additional wealth necessary to sustain it.
Very little theory is required to understand this, since it is increasingly obvious to anyone, empirically, who gets rewarded and who isn't.
Hence, I expect the first rounds of new, large class struggles in the West to occur in my lifetime.
Jurriaan
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Received on Thu Nov 27 01:56:02 2008
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