US Indymedia Global Indymedia Publish About us
Printed from Boston IMC : http://boston.indymedia.org/
Boston.Indymedia
IVAW Winter Soldier

Winter Soldier
Testimonies
Brad Presente

Other Local News

Spare Change News
Open Media Boston
Somerville Voices
Cradle of Liberty
The Sword and Shield

Local Radio Shows

WMBR 88.1 FM
What's Left
WEDS at 8:00 pm
Local Edition
FRI (alt) at 5:30 pm

WMFO 91.5 FM
Socialist Alternative
SUN 11:00 am

WZBC 90.3 FM
Sounds of Dissent
SAT at 11:00 am
Truth and Justice Radio
SUN at 6:00 am

Create account Log in
Comment on this article | Email this article | Printer-friendly version
Commentary :: Globalization
The Financialization of Capital and the Crisis
04 Aug 2008
The stock market- and real estate-bubble occur in advanced capitalism. The government response was to create a second bubble, the great bubble transfer. The real estate bubble crashed last summer. John Bellamy Foster teaches at the University of Oregon and is editor of Monthly Review.
Financialialization is the shift from production to finance.

The economy has slowed down for decades. Real wages have not gone up but have stagnated for 30 years. Consumption has been based mainly on borrowing. Speculation provided stimulus and kept the economy from sinking.

Bundling risk enabled expanding the mortgage market. Structured investment vehicles (SIVs) were created so risks did not appear on the balance sheets. All this created greater risk like a bunch of fire crackers bundled together.

to read John Bellamy Foster's article, click on
http://www.monthlyreview.org/080401foster.php
See also:
http://www.mbtranslations.com
http://www.monthlyreview.org

Copyright by the author. All rights reserved.
Add a quick comment
Title
Your name Your email

Comment

Text Format
Anti-spam Enter the following number into the box:
To add more detailed comments, or to upload files, see the full comment form.