Crisis in the Heartland: Consequences of the New Wall Street System
New Left Review 55
Against mainstream accounts, Peter Gowan argues that the origins of the global financial crisis lie in the dynamics of the New Wall Street System that has emerged since the 1980s. Contours of the Atlantic model, and implications—geopolitical, ideological, economic—of its blow-out.
The long credit crunch that began in the Atlantic world in August 2007 is strange in its extraordinary scope and intensity. Mainstream discourse, referring to a ‘sub-prime’ crisis, implies that the credit crunch has been caused, rather than triggered, by a bubble in the real economy. This is at best naïve: after all, the bursting of an equally large bubble in the Spanish housing market led to no such blow-out in the domestic banking system. The notion that falling house prices could shut down half of all lending in the us economy within a matter of months—and not just mortgages, but car loans, credit-card receivables, commercial paper, commercial property and corporate debt—makes no sense. In quantitative terms this amounted to a credit shrinkage of about $24 trillion dollars, nearly double usgdp. Erstwhile lenders were soon running not just from sub-prime securities but from the supposedly safest debt of all, the ‘super senior’ category, whose price by the end of 2007 was a tenth of what it had been just a year before…
Financial Regime Change?
New Left Review 53
As stock markets plunge and governments scramble to bail out the finance sector, Robert Wade argues that we are exiting the neoliberal paradigm that has held sway since the 1980s. Causes and repercussions of the crisis, and errors of the model that brought it to fruition.
Capitalism and Its Discontents, a 5 part series, delves into the roots of the crisis gripping the economies of the Global North and South — and the political upheaval it has spawned, from Iceland to Brazil.
Doug Henwood talks about the US economic stimulus package. Ian Bone talks about how the crisis is affecting the UK, where wildcat strikes have erupted in recent weeks. And political economist David McNally talks about the roots of the slump.
[For grumpy cat] A Dirty Steenky Commie named Alain
Le Monde diplomatique
Alain Badiou’s book on Sarkozy reveals the philosopher’s own advocacy of change based in reality, which is beginning to displace the old ‘new philosophy’ of Bernard-Henri Lévy et al
Alain Badiou: Roads To Renegacy
Interview by Eric Hazan
New Left Review 53
A philosophe engagé discusses the ‘wrong turn’ taken by so many erstwhile French Maoists, locating its sources within the landscape of 1970s militancy. The perils of politics as ambition, as fashion, as absolute—paving a mediatized path from 68 to Sarkozy.
The Communist Hypothesis
New Left Review 49
Why does the spectre of May 68 still haunt French discourse? Alain Badiou on the country’s longue durée sequences of restoration and revolt, and the place of Sarkozy’s presidency within them. Lessons in political courage from Plato and Corneille, and a call to reassert the Manifesto’s founding wager.