Market Failure
All of the fans of so-called free markets take note, deregulation and unfettered greed spells big trouble. How blatant can the failure of capitalism be? The system is supposed to make money, hah! All that is happening is that public funds are now underwriting private profits so that the whole system doesn’t collapse. In other words, taxpayers who don’t have a financial interest in these businesses are forking out so that other businesses which they also don’t have an interest in can continue with business as usual, all because if these two mortgage companies have failed to look after their own arse.
We had a little market crash a few years back and around the world governments decided to nationalise a few things so that people generally were protected against the worst effects of failures in the capitalist model. In recent times such policies have been systematically attacked and the institutions undermined and sold off as the neocons lauded the economic miracle of the stock market. Now in the US we are seeing the whole house of cards looking very shaky indeed.
This doesn’t stop here unfortunately. Right now huge slabs of money are simply disappearing, a lot of it is money on the books of banks, superfunds and governments. All of the debt the US and others have been carrying as the consumed their way through the last twenty odd years is starting to look extremely risky right now.