Democracy gets in the way...?
Capitol Hill finally came up with a rescue plan, pumping in $700b into the ailing capitalist economy, already an embarrassing about turn of the Washington-Consensus pride. And now, one house of the lauded American bicameral democracy, can't seem to agree on the plan that is essentially America making-up for its corporate greed that has forced global markets into a plummet.
Some may argue this is democracy at its best, preventing a Republican government from abusing its power. But some, and rightly so, have argued that this has sunk to the base wrangling of domestic politics in the light of the American elections. And if the real reason is the latter, which we might never know, I am terribly disappointed; where the American elections has fallen to become the playground of narcissists, with the world suffering from it.
Capitalistic Plague: The Real Economy Affected
Imagine ambitious investment bank, headquartered in New York. Greedy to get balance sheets to look impressive, so shares can go up, so their dividends go up and so do their bonuses. Along comes risky securitised mortgages which equally ambitious rating agencies say are "investment-grade". Investment bank takes on this risk, unsurprisingly risk fails, bank goes bankrupt.
Now, car manufacturers, pharmaceuticals, toy-makers, food manufacturers etc are paying for this greed and ambition because of the inter-connected global market.
This great big invention of liberal capitalism has now become a plague.
Uncle T
