Is there a chance of another economic meltdown?

Gerald Epstein: Real message of S&P downgrade of US debt outlook is threat of another meltdown of finance sector.

Meanwhile, Goldman Sachs, the investment giant that brought you the financial crisis and world food crisis, is lobbying to weaken the Volcker rule, which is designed to limit banks from speculating with their own money.

Also, Michael Hudson and Richard Wolff discuss debt and the broken system.

James Crotty: Objective of austerity campaign is a return to unregulated capitalism and weak unions of the 1920s.

James Crotty: High deficits deliberately created to justify return to 1920’s capitalism.

One thought on “Is there a chance of another economic meltdown?”

  1. I just read “Traitor to His Class, The Privileged Life and Radical Presidency of Franklin Delano Roosevelt” by H.W. Brands, and any sane person can see that NO ONE had a cure for the last Depression — Hoover had the depression from Oct. 1929 to March 1933 (inauguration back then was in March), and he applied supply-side trickle-down, make-the-rich-happy economics to no avail. Hoover’s failure accounted for Roosevelt’s popularity. Roosevelt DID get the banking industry into recovery, partly by allowing weak banks to fail. The CCC etc. was palliative, giving work to young people and others, but Roosevelt was decidedly NOT in favor of deficit-spending at that time, and was against long-term “relief” and unemployment payments — he wanted jobs, not hand-outs. Today’s political arena has precisely the same actors: Let the economic cycle run it’s course (with whatever human suffering is needed), let Private Industry fix it, spend a lot on public works, try to regulate prices and wages (no-no with the Supreme Court back then). No One had a solution — until 1937-1940 when War provided the reason for increasing production. In the 1930s the U.S. was the #1 Creditor nation (everyone owed us money) and had a huge surplus of domestic oil, none was imported. How different in this Second Depression!

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