the end of neoliberalism

Kann

An intersting article I stumbled upon :
http://www.project-syndicate.org/commentary/stiglitz101
A bit long but here are the last 3 paragraphs :

Defenders of market fundamentalism want to shift the blame from market failure to government failure. One senior Chinese official was quoted as saying that the problem was that the US government should have done more to help low-income Americans with their housing. I agree. But that does not change the facts: US banks mismanaged risk on a colossal scale, with global consequences, while those running these institutions have walked away with billions of dollars in compensation.

Today, there is a mismatch between social and private returns. Unless they are closely aligned, the market system cannot work well.

Neo-liberal market fundamentalism was always a political doctrine serving certain interests. It was never supported by economic theory. Nor, it should now be clear, is it supported by historical experience. Learning this lesson may be the silver lining in the cloud now hanging over the global economy.

ryan198

Kann wrote:

An intersting article I stumbled upon :
http://www.project-syndicate.org/commentary/stiglitz101
A bit long but here are the last 3 paragraphs :

nice find...there are several fundamental flaws in market capitalism. One is the belief that corporate CEOs would actually "follow the law", the other is that it's always the governments fault. In reality it's our market preaching m-f's that are taking advantage of us and running to the bank. Check this one on the Savings and Loan Scandals of the 1980's (did you know that it represents 1/4 of our national debt?) http://www.ahealedplanet.net/savings.htm