History suggests that, when capitalism is verging on collapse, the state piles in and gives an adrenaline shot of taxpayers' money to get it back on its feet again and push it off for another stint, letting it pick up speed until it decides it doesn't need that pesky state tagging along nagging at how it should slow down a bit and conserve its energy - until it starts to totter again, and the whole process is repeated. All we have so far is a massive injection of taxpayers' future earnings being supplied to allow the banks to loan it back at interest. If the shares recover then the bonus binge will begin again and if there's anything left the taxpayer might see some of the upfront payment returned -less inflation. Then the lectures will begin again about how all these attempts to regulate are 'fighting the last war', and how markets with their price signals and rational agents are so much more responsive - and it deja vu all over again. I'm afraid the death of neoliberal capitalism has been greatly exaggerated. |
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