Comments on: No Pain, No change http://www.greaterdemocracy.org/archives/635 Mon, 08 Sep 2008 05:01:52 +0000 http://wordpress.org/?v=2.3.3 By: Jock Gill http://www.greaterdemocracy.org/archives/635#comment-3707 Jock Gill Thu, 24 Jan 2008 23:35:51 +0000 http://www.greaterdemocracy.org/archives/635#comment-3707 Peter, I think George Soros answers your questions far better than I could. See: http://www.ft.com/cms/s/0/1a7af090-c956-11dc-9807-000077b07658.html The worst market crisis in 60 years By George Soros Published: January 23 2008 02:00 | Last updated: January 23 2008 02:00 T he current financial crisis was precipitated by a bubble in the US housing market. In some ways it resembles other crises that have occurred since the end of the second world war at intervals ranging from four to 10 years. However, there is a profound difference: the current crisis marks the end of an era of credit expansion based on the dollar as the international reserve currency. The periodic crises were part of a larger boom-bust process. The current crisis is the culmination of a super-boom that has lasted for more than 60 years. Boom-bust processes usually revolve around credit and always involve a bias or misconception. This is usually a failure to recognise a reflexive, circular connection between the willingness to lend and the value of the collateral. Ease of credit generates demand that pushes up the value of property, which in turn increases the amount of credit available. A bubble starts when people buy houses in the expectation that they can refinance their mortgages at a profit. The recent US housing boom is a case in point. The 60-year super-boom is a more complicated case. --- snip Peter,

I think George Soros answers your questions far better than I could.

See: http://www.ft.com/cms/s/0/1a7af090-c956-11dc-9807-000077b07658.html

The worst market crisis in 60 years
By George Soros
Published: January 23 2008 02:00 | Last updated: January 23 2008 02:00

T he current financial crisis was precipitated by a bubble in the US housing market. In some ways it resembles other crises that have occurred since the end of the second world war at intervals ranging from four to 10 years.

However, there is a profound difference: the current crisis marks the end of an era of credit expansion based on the dollar as the international reserve currency. The periodic crises were part of a larger boom-bust process. The current crisis is the culmination of a super-boom that has lasted for more than 60 years.

Boom-bust processes usually revolve around credit and always involve a bias or misconception. This is usually a failure to recognise a reflexive, circular connection between the willingness to lend and the value of the collateral. Ease of credit generates demand that pushes up the value of property, which in turn increases the amount of credit available. A bubble starts when people buy houses in the expectation that they can refinance their mortgages at a profit. The recent US housing boom is a case in point. The 60-year super-boom is a more complicated case.

— snip

]]> By: Peter Kay http://www.greaterdemocracy.org/archives/635#comment-3678 Peter Kay Tue, 15 Jan 2008 08:03:06 +0000 http://www.greaterdemocracy.org/archives/635#comment-3678 Can you please be a little more specific on the harms done by the "culture of global, unregulated, free market corporatism" and what specific kind of change are you advocating? I don't think there is a rational business leader today that would call today's modern global commerce "unregulated" by any stretch. Nor would one say that global commerce is a free market. And what is "corporatism" in your definition? Your refusal of using common terms notwithstanding, a global unregulated free market capitalistic/corporatism system doesn't exist, at least not in any substantial form. No? Can you please be a little more specific on the harms done by the “culture of global, unregulated, free market corporatism” and what specific kind of change are you advocating?

I don’t think there is a rational business leader today that would call today’s modern global commerce “unregulated” by any stretch.

Nor would one say that global commerce is a free market.

And what is “corporatism” in your definition?

Your refusal of using common terms notwithstanding, a global unregulated free market capitalistic/corporatism system doesn’t exist, at least not in any substantial form.

No?

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