Four important truths
from Edward Fullbrook
There is a worth-reading review by Jonathan Kirshner of four books on financialization in the just-released current issue of the Boston Review. Kirshner writes:
But the collective sigh of relief and overconfident pronouncements emanating from Wall Street and Washington obscure the fact that we have done little to avert an even worse crisis in the future. We may have stanched the bleeding, but the underlying disease—a culture, ideology, and political economy of uninhibited finance—remains. Indeed, by tiptoeing around the real issues we may ultimately make things worse.
The reviewed books are:
Simon Johnson and James Kwak, 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown. Vintage, $15.95 (paper).
Richard A. Posner, A Failure of Capitalism: The Crisis of ’08 and the Descent into Depression. Harvard University Press, $23.95 (cloth).
Nouriel Roubini and Stephen Mihm, Crisis Economics: A Crash Course in the Future of Finance. Penguin Press, $27.95 (cloth).
Joseph E. Stiglitz, Freefall: America, Free Markets, and the Sinking of the World Economy. W.W. Norton, $16.95 (paper).
All four books argue that “the economy is poised to head down the same road that led to the recent collapse”. From the books, argues Kirshner, emerge four important truths:
- Keynes was right and classical economics wrong.
- Unregulated finance is inherently prone to crisis.
- The financial sector has become too big.
- The fault lies not with our bankers, but with ourselves.
The whole review is available here.