i took a swipe at my better here
in a comment cage

at SMBIVA

one of our leading red knights ..peter gowan

in anticipation of a nuke response

i decided to bring in my big gun

eve abel

directrix  of project moby
a model/ simulator

of our global market system

over

at the scrimshaw institute

here is my transcription of her notes on sir gowan's piece

“The long credit crunch that began in the Atlantic world in August 2007 is strange in its extraordinary scope and intensity. “

 opener worth of g k chesterton

“Mainstream discourse, referring to a ‘sub-prime’ crisis, implies that the credit crunch has been caused, rather than triggered, by a bubble in the real economy. This is at best naïve: after all, the bursting of an equally large bubble in the Spanish housing market led to no such blow-out in the domestic banking system.”

a prigish point made out of a consistent and sensible propaganda strategy by laputa incorporated types

i submit no one holds this causal claim as serious explication of the crisis so why the belaboring for three paragraphs

just declare the crisis is a result of the global hi fi structure
that has developed over the last 35 years or so

and have at it …cut up the paper tower

“An understanding of the credit crunch requires us to transcend the commonsense idea that changes in the so-called real economy drive outcomes in a supposed financial superstructure. Making this ‘epistemological break’ is not easy. “

really ???

here's the assumptions of our hegemonic “model” that blind the seer of today… i guess

“financial systems ‘work’, in the sense of efficiently aiding the operations of the real economy…financial trends themselves are of secondary significance”

problem i doubt any one seriously believes
either of those “assumptions”

least of all anyone who's made a living

on wall street

“Thus the assumption that the massive bubble in oil prices between the autumn of 2007 and the summer of 2008 was caused by supply-and-demand factors, rather than by financial operators”

again who was taken in brother gowan???

yes there was peak thisers and drought thaters and population bombers etc etc
who hoped …hoped this sudden commodity price spout

was the onset of the final three winters of doom but …

economists not taken in and taken away
by their own desires for an end time

to homer simpson's and gordon geckco's amerika…i doubt it

“Breaking with the orthodoxy that it was ‘real economy’ actors that caused the crisis carries a political price: it means that blame can no longer be pinned on mortgage borrowers for the credit crunch, on the Chinese for the commodities bubble, or on restrictive Arab producers for the sudden soaring of oil. “

indeed and needless to say the very pivot of wall streets spontaneous batch of massive disinfo disintell system

” our starting point the need to explore the structural transformation of the American financial system over the past twenty-five years. “

 boy do these round about arm chair essays
prove tedious

like sunday dinners

they are out comrade peter

get on with it

zip zap…theses coming
be warned …

number one :

“I will argue that a New Wall Street System has emerged in the us during this period, producing new actors, new practices and new dynamics. The resulting financial structure-cum-agents has been the driving force behind the present crisis.”

number two

“.enroute .. the financial sector constituted by far the most profitable component of the American and British economies and their most important ‘export’ earner. “

number three

“the new structure necessarily produced the dynamics that led towards blow-out. “

caveat :

“This analysis is not offered as a mono-causal explanation of the crisis.”

other perps :

” A fundamental condition, creating the soil in which the New Wall Street System could grow and flourish, was the project of the ‘fiat’ dollar system, the privatization of exchange-rate risk and the sweeping away of exchange controls—all euphemized as ‘financial globalization’. “

here's HEGEL !!!

”.. the system could not have risen and flourished if it had not offered answers—however ultimately pathological—

to a range of deep-seated problems within American capitalism overall.

There is thus a rational, dialectical kernel in the superficial distinction

between financial superstructure and the ‘real’ us economy. “

i believe owen refered to this as a marxian swan dive

i prefer to blame this on the old man from the u of berlin himself..but that's i guess another kettle of fish entirely

so are we off ??? nope first brace yourselves chillin'…a guy like this needs lots of elbow room to sweep us to the far horizon

“… to understand the deeper roots of the malaise, we do indeed need to probe into the overall socio-economic and socio-political characteristics of American capitalism as it has evolved over the past twenty-five years. I will raise the possibility of systemic alternatives, including that of a public-utility credit and banking model. Finally, I will consider the international dynamics unleashed by the present crisis and their implications for what I have elsewhere described as the Dollar–Wall Street Regime.”

forgive him for he knows only what he do …graspers of the main links of the world historical like this chap

need lots of elbow room to sweep us to the far horizon

but i'll kick us thru it

bretton woods died in 1971

and set off the building of a paper armada like the world has never seen before

we could review em all

as herr gowan does or leave it at this



“These (paper ships) mutually re-enforced each other, forming an integrated and complex ..(fleet)

..which then ..(sank ).. in the.. (hurricanes) …of 2008”

fact:



during the bretton woods salad days



“… Wall Street investment banks engaged in very little securities trading on their own account, as opposed to trading on behalf of clients”

after that they began to put their own skin in the great game too

of course they built these vehicles outside the reach of sheriff sam

pots of dough were made pots and pots of dough

unlike that old prat Warren Buffett they didn't invest they got into “generating” market flux and exploiting it

ie

bubblenomics was big :

” Time and time again, Wall Street could enter a particular market, generate a price bubble within it, make big speculative profits, then withdraw, bursting the bubble”

billions became trilions and even if ivy econs were stuck with lucas barro and woodford

.

wall street “.. understood Minsky’s theory of bubbles and blow-outs, but believed that they could use it strategically for blowing bubbles, bursting them, and managing the fall-out by blowing some more.”

a numerical drama in three balance successive sheets  follows … just to perplex the ungifted i suppose

up shot “.. leverage is now too high..a fall in the price of securities leads to sales of securities: the supply curve is downward-sloping. “.

i'll spare you the hot dog factory tour.. and enter peter's “shadow banking ” sector

ohh ya we know all about this don't we..its been our headlines for months apon months

but is there a keener insight here?…..nope not that my jaunticed eye can see ..so we'll keep moving

—-pssst … i''m starting to dream of a return to the porcine embrace of henwood doug —-

btw “It might, in principle, have been the case that the cluster of mutually re-inforcing innovations which we have called the New Wall Street System, were responses to the emergence of a housing-market bubble in the us from 2001….(however as this paper has AMPLY shown)…all the key innovations were set in place before the onset of the (house lot )bubble “

quite !!!! but comes the conclusion:

it weren't the mortgages where hell 's portal openned up it was

” in the financial system itself. The crisis was triggered not only by the scale of the debt bubble, but by its forms.”

acchhh mein gott in the end it is nothing less den zee zyztem itself that contradicts …errr…itself

and the achilles heel ??

too complex too leveraged too partitioned too remote too mediate

just plain too too much innovation

doctor frankenstein you have at long last transgressed the limits of the poosible

that is all mein kinder except to add

“Much remains obscure about the precise mechanisms through which the credit crunch acquired its scope and depth in 2007–08,”

mainly because the main Wall Street operators themselves sought to obfuscate both the nature of their plight and their survival tactics. “

so the complexity can be said to have destoryed the wall street bucs

but in a clever form of merciful reprieve

this very same infernal intricacy has re-covered their crimes again

in the dust kicked up by its own rubble now uncle gets looted

okay so that's what happened how does wall street and its stooges alibi it ??

“Prevailing theories ”

“Much of the mainstream debate on the causes of the crisis takes the form of an ‘accidents’ theory….the result of contingent actions .”

say no more on that eh ???…”who knew it could come to this is pure tap dancing vampery

when the facts reveal it t'was the inevitable necessary product of “”a relatively coherent structure “

but comes this now

”.. in addition .. we should note another striking feature of the last twenty years: the extraordinary harmony between Wall Street operators and Washington regulators….. Typically in American history there have been phases of great tension, not only between Wall Street and Congress but also between Wall Street and the executive branch. This was true, for example, in much of the 1970s and early 1980s. “

i must admit here he surprise me somehow the “great tension” between “Wall Street and Congress but also between Wall Street and the executive branch” escaped me at the time and in fact right up until now

i've always figured the relations between these parties was nothing but cordial

since FDR died in the saddle but ehh you live and learn…much axe grinding follows

“social democrats ” get pillaried for falling for “idealist mouse traps like elite hypnotic belief in free markets

for everyone and everything from jobs to assets to palm oils

the Rx recommended by these boobs of good intentions

a fancy set of “regulations rules and oversights”..one can imagine the icy analytic gowan glance turning 

scoffingly warm at the drivel of these poor prisoners of their own thought pens

before hurling this thunderbolt

“The real debate over the organization of financial systems in capitalist economies is not about methods and modes of regulation. It is a debate between systemic options, at two levels. ..”

“systematic options “comrades …deeply systematic at at no less then “two levels ”

“A public-utility credit and banking system, geared to capital accumulation in the productive sector
versus

a capitalist credit and banking system, subordinating all other economic activities to its own profit drives.”



man i would want to be around when those two tangle would you ???

“An international financial and monetary system under national-multilateral co-operative control

versus

a system of imperial character, dominated by the Atlantic banks and states working in tandem”



wow how about

we organize

a tag team steel cage texas bull rope

last man standing tussle 



fit subject for a sequel type  post

Posted by pinky at 10:28 PM