18 November

Credit Bust as The West Bets Trillions?

Credit Bust as The West Bets Trillions?

Banks are still the focus of all problems in the financial markets. They still have to be supplied with money, and they still pose a threat to the system.

And those who allowed them to become so powerful are all those politicians and governments that gave the financial markets so much freedom, often socialized the risks, incurred too much government debt, and allowed the municipalities, states and countries to become so irresponsible. “The market” is not some group of experts, nor is it the last resort of collective reason. It is an orgy of irrationality, arbitrariness, waste and egoism. “Democracy” is not some event involving citizens, or some celebration of altruism and far-sightedness, but rather the attempt to bundle diverging interests into decisions in a way that’s as peaceful as possible.

Together, the market and democracy are what we like to call “the system.” The system has driven and enticed bankers and politicians to get the world into trouble, or least one could argue that if they too weren’t part of the system. And we could sweep it away if we had a better one.