10/03/18
The capture of money
Why people do not trust it
Money is a near-universal social institution. It evolved to support human cooperation and to control and coordinate the life of humankind. Like other core institutions, such as marriage and language, the forms that money takes may differ widely. The values and norms governing money’s use, and the practices associated with it, also vary widely. For…
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18/10/17
10-year retrospective: Lessons 7, 8, 9
Three more lessons! That's the lot
7. Neglect of international causes This is the most fatal flaw, as it is the one least understood by economists, governments or bankers. My interpretation of the crisis emphasises its international dimensions – not only in the rapid spread of the crisis but also in its root causes (see Lesson 3). Yet this perspective is…
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18/10/17
10-Year retrospective: Lesson 6
The State has rewarded bad behaviour and bad banks
6. Expect more bad bankers and bad banks How has the state punished the financial industry for its crimes, corruption and anti-social behaviour? By showering it with subsidies, privileges, perks and by offering it protection from an angry public. And by reducing its profitability and capacity to change by piling new regulatory layers and requirements….
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18/10/17
10-Year retrospective: Lesson 5
Banks have not regained public trust
5. Banking can only be reformed from within This is another unavoidable lesson. Banking has not been reformed by actions taken by the state, central banks or regulators since the crisis. Indeed they have set back the prospects for improvement. There were two main strands in the policy response to the crisis. One was monetary…
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16/10/17
10-Year retrospective: Lesson 4
People know injustice when they see it
4. The people will have revenge The countries worst affected by the financial crisis, the United States and especially the United Kingdom, have since experienced severe political turbulence. I believe this can be directly traced back to the financial crisis and the way it was dealt with by governments, central banks and the financial elite….
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