imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
latest news
best of news




A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List


IMC Network:

Original Cities africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

"We are in an epoch shift"

by Peter Bofinger Friday, Oct. 10, 2008 at 4:06 AM

Free markets became wild markets. The post-socialist blessing became the turbo-capitalist curse. The state allowed the monitoring of banks to be de facto privatized. Politics allowed the markets to run wild. In turbo-capitalism, contracting debts was trendy and saving was Philistine.


Interview with Peter Bofinger

[The financial crisis has destroyed the myth of Wall Street and now shakes the foundations of society, says economist Peter Bofinger. In this Spiegel Online interview, he speaks about the death of turbo-capitalism, the failures of politics and the return of the strong state. This interview published September 29, 2008 is translated from the German on the World Wide Web,,1518,druck-580333,00.html.]

Spiegel Online: Mr. Bofinger, did “turbo-capitalism” die in the fall of 2008?

Bofinger: Yes. It died in the last two weeks with a great bang. The age of reassessment now begins on the financial markets.

Spiegel Online: What triggered the bang?

Bofinger: Many factors came together: the collapse of Fannie Mae and Freddie Mac, AIG and then the bankruptcy of the US investment bank Lehman. Up to their declaration of bankruptcy, the hope prevailed on Wall Street that at least the bank deposits would be safe. Hardly anyone expected that the US government would let the largest investment bank of the country to go bust.

Spiegel Online: The Lehman bankruptcy destroyed the myth of Wall Street. Financial jugglers are no longer regarded as invulnerable. Was it a mistake not to save Lehman?

Bofinger: It was clearly wrong. The mutual mistrust of banks will increase even more.

Spiegel Online: How could it happen that the financial system has so fallen out of control that the danger of a core meltdown is now raised again and again?

Bofinger: In a certain regard, the triumphant advance of Anglo Saxon capitalism was a concomitant to the Cold War. New dynamic markets that brought prosperity for many people arose through the collapse of the planned economies in Eastern Europe. Free markets and unbridled speculation were equated with freedom. The belief was that all reins must be taken from the markets to solve the problems of humanity.

Spiegel Online: Was the state defined as evil and the free markets as good?

Bofinger: In the public discussion, the state fell more and more on the defensive and the power of markets grew. Hedge funds and shadow banks like the conduits of IKB (a German regional bank) and unregulated investment houses like Lehman fueled the financial system with increasingly risky speculations. An inscrutable net of mutual debts and dependencies developed worldwide. Free markets became wild markets. The post-socialist blessing became the turbo-capitalist curse.

Spiegel Online: What mistake did the state make?

Bofinger: The state allowed the monitoring of banks to be de facto privatized. Up to July 2007, the dominant idea was: when rating agencies described a loan as safe, it was safe. The state hardly examined what risks were hidden in the balance sheets of the financial houses.

Spiegel Online: Politics allowed the markets to run wild and citizens also contributed their part. More and more people financed their own life on credit.

Bofinger: In Anglo Saxon countries, turbo-capitalism has marked a lifestyle where contracting debts is trendy and saving is Philistine. Since the banks could resell the debts of their customers on the financial market, nearly everyone suddenly obtained credit in the United States and Great Britain. Many institutes did not test the incomes of their customers with documents before they granted them credit.

Spiegel Online: Is the dislocation and turbulence on the financial markets also possible on the commodity markets?

Bofinger: The danger that the market destroys itself cannot be excluded there. The globalization of the commodity markets has increased social inequality. The majority of employees no longer share in the growing national economic prosperity. The state should channel the effects of globalization through minimum wages and more education investments. Sooner or later, parties will gain power that say: Stop this@ Tighten the borders.

Spiegel Online: Do you think turbo-capitalism encourages extreme political id3eas?

Bofinger: One does not need much imagination. There will be populist politicians who exploit the growing discontent with the market economy and plead for protectionist measures. That would be fatal for an export-oriented national economy like the German economy.

Spiegel Online: What must the state do now to bridle the financial markets?

Bofinger: Three measures could be catalysors: building a global credit register, creating a state rating agency and a minimum standardization for guaranteed credits.

Spiegel Online: The hierarchy of power between politics and the economy has shifted through the US bailout package and the prohibition on short selling on stock exchanges. Are we in the West witnessing the return of the strong state?

Bofinger: It is now clear to everyone that seeing the state as the enemy of the market was wrong. In the long run, functioning markets require a stable state framework.

Spiegel Online: The relation of many citizens to the state may change through the present financial tremors. Politics assumes the role of rescuer in emergency. In the last years, people like Paul Kirchhof dominated the debate. This constitutional judge described the state as a hydra and demanded: Give back the money of the citizens!

Bofinger: Politics now has the chance of carrying on an image-campaign for the state. Too many politicians have long argued like Mr. Kirchhof. They constantly urge tax cuts. The impression arose that the state did not need the money of citizens. However the message of the state must be the exact opposite: We need your money and will use it responsibly. Whoever is for the market must also be for an efficient state with adequate financial resources.

Report this post as:

Local News

Change Links 2018 July posted J09 1:27PM

More Pix: "Families Belong Together," Pasadena J02 12:16PM

"Families Belong Together" March, Pasadena J02 12:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 4:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J10 11:58PM

Watch the Debate: Excluded Candidates for Governor of California M30 10:20PM

Change Links June 2018 posted M28 12:41AM

The Montrose Peace Vigil at 12 Years M22 1:01PM

Unity Archive Project M21 2:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 3:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 2:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 1:57PM

California police agencies violate Brown Act (open meetings) M02 1:31PM

Insane Company Wants To Send Nuke Plant Waste To New Mexico A29 4:47PM

Change Links May 2018 A27 1:40AM

Worker-Owned Car Wash on Vermont Closed A26 10:37PM


lausd whistle blower A10 11:58PM

Website Upgrade A10 3:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 1:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 11:58AM

Change Links April 2018 A01 11:27AM

Nuclear Shutdown News March 2018 M31 6:57PM

Join The Protest Rally in Glendale on April 10, 2018! M29 7:00PM

Spring 2018 National Immigrant Solidarity Network News Alert! M19 2:02PM

Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A. M16 5:40PM

Steve Mnuchin video at UCLA released M15 12:34AM

Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups M06 12:10PM

More Local News...

Other/Breaking News

Fbi fears this post J22 9:21PM

Disabled Folks among the extreme poorest in US counts J22 7:03PM

Banks Enriched By Trump Deficit Increase Of 4 to 5 Trillion $ J22 5:48PM

Illegal Russians Receiving Land and Homes in West Bank 2018 J22 11:24AM

Un monde de pauvreté J22 12:54AM

14 Disturbing Facts About Scott Gottlieb, Trump's FDA Head J20 10:47PM

Behind the scenes at fbi National Academy J20 2:47PM

Treasury Takes Aim at Shell Companies J20 11:18AM

Paraphysique de l'intelligence J20 9:08AM

Oklahoma GOP Senator Jim Inhofe's Bloody Record J20 4:01AM

Globalization: hope on the horizon despite Fake Liberals. J20 3:41AM

Sorry President Trump,Ted Cruz Texas Judicial System,is Worse Than Many Shithole Countries J19 4:49PM

The Shortwave Report 07/20/18 Listen Globally! J19 4:33PM

The System Question as a Survival Question J18 8:54PM

Nation's Largest Voting Machine Co., ESS, Admits Lying Re Having Installed Remote Control J18 11:55AM

Du pain et des jeux J18 9:53AM

Paraphysique de martyrologie J17 8:00AM

Children Incorporated Earns 4-Star Rating on Charity Navigator J16 11:24AM

Democratic Socialists of America J14 4:57PM

Leonard Peltier Non Violent Native American Political Prisoner since 1970's J14 4:18PM

Paraphysique miscellanées de l'aggiornamento J14 12:54AM

FBI Investigated LA County Sheriff Baca,Why Not Hank Skinner's Persecution? J13 3:52PM

Updated Partial List Of Famous Vegetarians, Vegans, & Fruitarians J13 2:59PM

The Shortwave Report 07136/18 Listen Globally! J12 4:36PM

Social Policy as Social Infrastructure J12 3:38AM

Vol I: 84 Varieties Of GOP Election Fraud J12 1:50AM

Texas Can Call it An Execution,But It is A State Sponsored Murder of Hank Skinner.. J11 6:48PM

June 2018 Honduras coup update J11 3:35PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy