Robert Brenner on the Roots of the Current Crisis
An interesting column – roots of the crisis are seen to lie in the continual injections of financial liquidity required to keep growth going in a global economy with a serious underlying deflationary bias, the result of excess capacity in manufacturing.
“Merely cutting the cost of borrowing will do little to remedy the long-term weaknesses of the advanced economies”
Wednesday September 26, 2007
The mortgage lending and banking turmoil in Britain and America seems to be contained, but its future course remains very much in doubt. If, as senior officials have long contended, economic fundamentals are strong, fears about the impact of the crisis should be allayed. But are they?