Savage Capitalism’s Failure

Back in March, in a post called Savage Capitalism, I wrote the following. A picture of what is really going on in the Shadow Banking System is beginning to emerge. It makes the coming slump much more troubling than those of the last 50 years. To begin with, we never had such large opaque pools of capital and derivatives before. The Growth of Credit Default Swaps (above) to more than $47 Trillion in the last two years is just one indication. The Darwinian Laissez Faire world Alan Greenspan and Milton Friedman celebrated has failed us. We need to throw out our “End Of History” narratives that said the free market democratic capitalism represented the final step in political organization. I am not saying a command economy of the Fascist or Communist model is any solution. What I am saying is that we essentially need to reinvent... [read full story]