Jorge Altamira
One hundred percent of the vulgar economists have noted in the list of those who say the current crisis is proof of market failure. It is noted that they did not understand or understand anything, because the opposite has happened: the market has been imposed across the line.
Indeed, the inflated prices of assets accumulated during the ascending process of speculation did not correspond to the actual values \u200b\u200bof the assets they claimed to represent an equivalent. Enough that a mortgage borrower express its inability to pay bills that had been imposed onerous, for the price of these mortgages and securities that were issued in his name were on the floor. There was a huge capital was fictional - who had recovered beyond the real value that claimed to represent. When was forced to verify their actual market value, the capital found that the trading at a third of what they said their books.
market's victory is so overwhelming that the state intervenes to prevent the adjustment between the fictitious capital and real capital is cleared. In this way, however, blocked the exit to the crisis, which depends on the registered values \u200b\u200bbecome actual values. This would occur, for example, is discounted 70% of the values \u200b\u200binvolved and the houses and their mortgage pass to be worth 30 cents of its value unit. The debtor may pay the debts thus the expense, of course, a huge capital loss (notional) of creditors. Of course, this would cause a huge capital reflux and depression of the economy. To avoid this, the government should expropriate the capitalists (creditors), and focusing the resources of the economy, an economic process restart on new bases. That state intervention would have a revolutionary character.
But if the market has reminded the productive forces have developed in a capitalist, who have gone beyond their limits and have generated enormous fictitious capital, this means that the organization regulating social through the market has done its due time and that is a hindrance to the development of productive forces. The capitalist market as a historical form of social organization, shows that it has reached its limit at the time, precisely, is imposed under the violent form of economic boom.
Capital has tried, throughout its history, to overcome the constraints of the market. State intervention has been one of its instruments. But this intervention the crisis erupted in the '70s and gave way to another kind of state intervention, which can be summarized in the mass privatization of all public assets and forms non-capitalist production (eg, conversion to employees of the professions). The current crisis is therefore a crisis of larger scale, because it synthesizes and pop out the previous attempts: the statist capitalist and capitalist privatization.
Indeed, the inflated prices of assets accumulated during the ascending process of speculation did not correspond to the actual values \u200b\u200bof the assets they claimed to represent an equivalent. Enough that a mortgage borrower express its inability to pay bills that had been imposed onerous, for the price of these mortgages and securities that were issued in his name were on the floor. There was a huge capital was fictional - who had recovered beyond the real value that claimed to represent. When was forced to verify their actual market value, the capital found that the trading at a third of what they said their books.
market's victory is so overwhelming that the state intervenes to prevent the adjustment between the fictitious capital and real capital is cleared. In this way, however, blocked the exit to the crisis, which depends on the registered values \u200b\u200bbecome actual values. This would occur, for example, is discounted 70% of the values \u200b\u200binvolved and the houses and their mortgage pass to be worth 30 cents of its value unit. The debtor may pay the debts thus the expense, of course, a huge capital loss (notional) of creditors. Of course, this would cause a huge capital reflux and depression of the economy. To avoid this, the government should expropriate the capitalists (creditors), and focusing the resources of the economy, an economic process restart on new bases. That state intervention would have a revolutionary character.
But if the market has reminded the productive forces have developed in a capitalist, who have gone beyond their limits and have generated enormous fictitious capital, this means that the organization regulating social through the market has done its due time and that is a hindrance to the development of productive forces. The capitalist market as a historical form of social organization, shows that it has reached its limit at the time, precisely, is imposed under the violent form of economic boom.
Capital has tried, throughout its history, to overcome the constraints of the market. State intervention has been one of its instruments. But this intervention the crisis erupted in the '70s and gave way to another kind of state intervention, which can be summarized in the mass privatization of all public assets and forms non-capitalist production (eg, conversion to employees of the professions). The current crisis is therefore a crisis of larger scale, because it synthesizes and pop out the previous attempts: the statist capitalist and capitalist privatization.
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