Slog News & Arts

Line Out

Music & Nightlife

« Connecticut Legalizes Same-Sex... | Feministartfeministartfeminist... »

Friday, October 10, 2008

The Age of Post-Neoliberalism

posted by on October 10 at 9:54 AM

After a terrific (for a few) and brutal (for many) 30-year run, neoliberalism has reached death’s door. That door will have to open and the world economy will enter the solution to everything: a permanent and universal state of socialism. Welcome to the future!

The crisis was caused by the largest leveraged asset bubble and credit bubble in the history of humanity were excessive leveraging and bubbles were not limited to housing in the US but also to housing in many other countries and excessive borrowing by financial institutions and some segments of the corporate sector and of the public sector in many and different economies: an housing bubble, a mortgage bubble, an equity bubble, a bond bubble, a credit bubble, a commodity bubble, a private equity bubble, a hedge funds bubble are all now bursting at once in the biggest real sector and financial sector deleveraging since the Great Depression…

…At this stage central banks that are usually supposed to be the “lenders of last resort” need to become the “lenders of first and only resort” as, under conditions of panic and total loss of confidence, no one in the private sector is lending to anyone else since counterparty risk is extreme. And fiscal authorities that usually are spenders and insurers of last resort need to temporarily become the spenders and insurers of first resort. The fiscal costs of these actions will be large but the economic and fiscal costs of inaction would be of a much larger and severe magnitude. Thus, the time to act is now as all the policy officials of the world are meeting this weekend in Washington at the IMF and World Bank annual meetings.

RSS icon Comments


Socialism sounds nice and all, but I don't want my fortunes and chances at life tied to the rest of humanity. Humanity is pretty dumb.

Posted by Mr. Poe | October 10, 2008 9:55 AM

Mr. Poe, there is no other choice. This it. We now breath in and out the air of socialism. The world will be a better place.

Posted by charles mudede | October 10, 2008 10:00 AM

To think that that sentence might actually continue is numbing my brain.

Posted by w7ngman | October 10, 2008 10:11 AM

Holy garbled sentence, Batman! That thing was so painful to read I had to stop. Charles, can you give a summary that makes sense, please?

Posted by NaFun | October 10, 2008 10:11 AM

So buy me a drink.

Posted by Mr. Poe | October 10, 2008 10:13 AM

"Le laissez-faire, c'est fini." --Nicolas Sarkozy, Sept. 25, 2008.

The Good News, straight from the mouth of France's erstwhile Reagan-in-waiting. Reaganomics is, at long last, dead. GOOD. FUCKING. RIDDANCE.

Posted by Jeff Stevens | October 10, 2008 10:24 AM

Funny, socialism and neoliberalism each has lovely benefits obvious to all, but each carries its shadow around, its consequence, its price. In neither case will we ever endure the consequence, neither today with the neolib market functioning perfectly normally, accurately reporting that nothing is worth what we hoped; nor in future after we slouch toward socialism, when we will absolutely refuse to pay for the kind of excellent free universal early education upon which the hope of socialism must rest.

The coffee is so strong this morning that I have no idea what I may have written. NaFun, how's this for garbled?

Posted by tomasyalba | October 10, 2008 10:27 AM

Capitalism sounds nice and all, but I don't want my fortunes and chances at life tied to the rest of humanity. Mr. Poe is pretty dumb.

Posted by Humanity | October 10, 2008 10:35 AM

"Mr. Poe, there is no other choice. This it. We now breath in and out the air of socialism. The world will be a better place."

Exactly what the socialists and the communists were saying before and after the Great Depression.

"A gifted platoon of muckrakers-Ida Tarbell, David Graham Phillips, Lincoln Steffens-charged through the country exposing theft, scandal, brutality. Directly behind them came the Socialists, pointing to the system that had created the abuses which the muckrakers exposed" Irving Howe.

They were wrong then and they will be wrong now. If the Great Depression was incapable of turning the US into a socialist economy, then why are you convinced it will happen this time?

Posted by CA | October 10, 2008 10:36 AM

Meet the new boss, same as the old boss. What kind of socialism leaves all the neoliberals in power?

Posted by Trevor | October 10, 2008 11:16 AM

Is that how you interpret this ink blot, mudede?

Others see a door opening to a dystopian corporate paternalism, where everybody is "too big to fail" ... contemporary Japan meets Rollerball.

Posted by RonK, Seattle | October 10, 2008 12:14 PM

Too big to fail should equal antitrust breaking up.

Posted by Bellevue Ave | October 10, 2008 1:02 PM

You are really crap when it comes to economics... the blog entry you link to has not one well thought out argument, just a lot of "Holy Shit!" Stick to Negri/Hardt regurgitations, old cove.

Posted by eric sic | October 10, 2008 1:40 PM

instead of socialism, can't we just call it fascism? because that's what murkins are going to want.

Posted by max solomon | October 10, 2008 2:18 PM

Charles, the idiot Christians are to stupid to grasp Hegel and Marx. Israel long ago grasped the social evolution of economics into a higher form know as Socialism.

Obama lives and breathes Marxism, and his whole campaign is social construction theory write large. Obama will smash us corporate capitalism and if we are lucky idiot capitalists like Bill Gates and Jeff Bezos will be sent to a farm with William Buffet to shovel pig manure and plant organic kale.

Capitalism is over, long life socialism with Obama as our first socialist Great Leader. Mazel Tov!

Posted by Issur | October 10, 2008 2:29 PM

Issur, when you move out of the basement at your parent's place, make note - it's Warren Buffet.

Posted by Bellevue Ave | October 10, 2008 2:42 PM

It's Jimmy Buffett, you putz!

Posted by Cookie W. Monster | October 10, 2008 2:49 PM

Comments Closed

Comments are closed on this post.