Posts Tagged ‘revolution’

Spain

Flash report: apparently, there is a revolution in Spain.

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See, some scholars took that seriously and started some action here (it’s a petition defending the abrogation of article 56 of the Lisbon Treaty which forbids any restrictions on capital flows).

Is financial innovation the ultimate unintended path towards socialism?

“Some banks are just going to explode if we do not nationalize them. Or if the Government does not buy their bad credit. This of course would translate into massive costs for the State. But we do have a problem anyway. There is nothing to do but a major intervention.

– And that’s the solution?

What? To nationalize all banks? Well, not really. But there is no other option. If the State buys all the junk credit, this is just like a huge subsidy. It can buy all banks instead and then make money.

– Does the State have money enough to do that?

Well if we trust the figures, the value of distressed banks is only 7% of the GDP. This is a lot, but only a part of the total value creation. At worst 20%. Other countries already did that.”

(from “Amerika muss seine Banken verstaatlichen”, Frankfurter Allgemeine, March 17 2008, available also in Spanish here)

That’s from an interview with NYU Stern School of Business economist Nouriel Roubini on the current credit crunch and financial debacle. In the light of other scholarly sources, this may also be described as the natural development of the internal contradictions of financial capitalism towards the achievement of socialist revolution. No?

No kidding. Maybe the social-scientific avant-garde of the socialization of finance would soon be called to the glorious task of thinking through the “how” of this unmissable opportunity for economic experimentation.

In John Lanchester’s perfectly explanatory LRB piece about finance in general and Northern Rock in particular, there was an interesting parenthesis:

“It may turn out the government has no choice but to announce that it has (accidentally and inadvertently) nationalised the Rock.” (from John Lanchester, “Cityphilia”, London Review of Books, January 3 2008)

Well, it happened. Who knows. Maybe real socialism will come one day as an unintended surprise from the financial services industry.