Financial Crisis: How to Stop the Panic
BusinessWeek - So far, crisis managers in the U.S. and abroad have relied mostly on using “helicopter money”—that is, dropping dollars across the financial landscape in hopes of reviving lending and spending. Generations of mainstream economists around the world learned this approach at the feet of the late Nobel laureate economist Milton Friedman, who coined the helicopter metaphor.
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Pulling in the same direction
Economist - Getting the world’s big central banks to act in the same way on the same day was a welcome show of unity given the threat to the global financial system and economy. It also minimised the risk of currency instability: a unilateral rate cut by one central bank could have hurt its currency.
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The Broken Pact with the People
Spiegel - Trust capitalism and shun government interference we were told. But irresponsible bankers saw a chance to get rich quick and went for it. Their failure has become ours — and the promise of a common good has evaporated along with faith in democratic capitalism.
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Stocks Keep Spiraling Down
BusinessWeek - A fifth straight day of losses ends with the Dow down 508 points, the S&P 500 under 1,000, and markets facing their worst year since 1937.
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EU Finance Ministers May Increase Savings Guarantee
Spiegel - Finance ministers from the 27 European Union member states are meeting on Tuesday and will likely agree to increase the EU private savings guarantee. But the bloc still has no strategic vision for how to confront the crisis. And none is likely to be forthcoming.
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Naomi Klein: Ideas have consequences
Democracy Now - What we are seeing with the crash on Wall Street, I believe, should be for Friedmanism what the fall of the Berlin Wall was for authoritarian communism: an indictment of ideology. It cannot simply be written off as corruption or greed, because what we have been living, since Reagan, is a policy of liberating the forces of greed to discard the idea of the government as regulator, of protecting citizens and consumers from the detrimental impact of greed, ideas that, of course, gained great currency after the market crash of 1929, but that really what we have been living is a liberation movement, indeed the most successful liberation movement of our time, which is the movement by capital to liberate itself from all constraints on its accumulation.
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Global Fears of a Recession Grow Stronger
NY Times - The vertiginous drop in stock markets on both sides of the Atlantic on Monday reflected not only those fears, experts said, but also a growing belief that the crisis could tip the world into a global recession.
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The day fear hit the markets
Independent - Fear. If there was one word to sum up the world’s financial markets yesterday, it was that. No one wanted to buy shares and, yet again, no one much wanted to lend money.
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