giovedì 9 ottobre 2008

Financial crisis: the show must go on...

The measures adopted by many Governments to cope with the present financial crisis are likely to be a desperate effort to deal with an event many economists are considering as a revolutionary change in international capitalism: these economists indeed have defined this crisis as "the fall of the Berlin Wall" of conventional capitalism. Is it really true? I note that, instead of finally fixing some rules for financial markets, decision makers are recurring to State aid under the pretext of supporting small savings' holders. The paradox is that those politicians and managers who have defended the principle of "lack of useless ties" for financial world in the name of a "free financial market", now are turning to the so hated State to save the financial "sancta sanctorum" upon which the capitalism of illusions and speculations has posed its bases. In the case of public education systems, public health care, workers' wages etc. the rules of liberism had to be rigidly applied: now it is possible to make some exceptions. Surely it is necessary to urgently protect citiziens and small/medium enterprises have be deceived by banks with unintellegible financial tools, but it is necessary to identify those are responsible of this crisis as well and make them pay the final global bill (both in economic and criminal terms). During the last decades the incresing gap between the top managers' and workers' salaries have been repeatedly denounced: these criminals received fanastic wages to make their dirty work. During the last decades the fact the big companies increased their profits shifting their money from production to speculation while burning hundred of thousands jobs everywhere. has been repeatedly denounced as well. All this was perfectly known but nothing happened. If clear rules will continue to lack (which could have been adopted i.e. within OCSE since long time) spending public money to save and support this foolish financial system will mean putting water in a broken bucket. This crisis has been possible thanks to the silent and culpable inertia of politics which has always supported the economy of illusions while penalizing the real production economy: for example in Italy the proposal of an increase in tax levels for financial revenues (which could have surely limited the shift of so many economic resources towards financial speculations) found fierce political oppositions while in Italy it is extremely difficult for a firm to recruit workers or for a new entrepreneur to start activities in any economic sector for the presence of a huge number of ties and expansive bureaucracy duties. Anyone has studied a little of economic history perfectly knows that these crises happen about every decade because they are almost necessary to make this foolish system work: speculative bubbles and crises follow each other with a certain predictable regularity. Indeed, while world financial economy is about to collapse, someone is speculating on this crisis to be ready to build the following speculative bubble: financial markets (as well as many common people) have no memory!
If precise rules are not defined, if we have not the courage to remove these politicians (predicating a false liberism and a parody of economic development) together with their friends in management (who are interested only in their own business), it won't be possible to stop this perverse mechanism and, at the crisis' end, we will act as nothing has happened and we will give again our money and consciences to the same individuals. Hence the choice is in deciding if the show must go on or not...

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