Archive for January 5th, 2009

The Gods that Failed. How blind faith in our markets has cost us our future. Larry Elliot & Dan Atkinson.

The Gods that Failed. How blind faith in our markets has cost us our future. Larry Elliot & Dan Atkinson.  2008. ISBN 978184792030.  Two financial writers in the UK  have penned quite a scathing review of the present financial situation from the view from the UK.  It gives you a good   touch point to review the US and Cdn takes.  Things are not that great all over, but they  really make a case that core to rebuilding our system is a strong robust middle class. The banks need to be regulated and taken back to their basic functions.  What they say we all can expect ( no surprises):

  • Taxes will rise.
  • Oil will drop then rise steadily (there is not enough)
  • House prices will fall -worldwide
  • The bad news continues with little guess how many years.
  • If food energy costs rise we risk a wage- price spiral
  • A set of  environmental disasters would be very hard to recover from at this time. (Eg Katrina)
  • Geopolitics will be unstable eg. Russia will club others with their oil and gas riches.
  • China could suffer the Olympic “curse” unless they spend even more on their infrastructure than they spent on Beijing.
  • State supervision and control of financial sector will dramatically impact business behavior.
  • Large reforms of the banking sector
  • Unions to survive will become more pro-trade

They make quite a statement about the need to use democracy to force accountability through all  politics with now the present public ownership in some business sectors. This needs an increase in public attention to voting etc. To Governments they suggest:

  • Don’t spend what you do not have
  • Increase taxes on the wealthy
  • Reduce corporate welfare
  • Increase the safety net for the poor
  • Invest in education, technology, and forward facing infrastructure.

Check them out at

Reblog this post [with Zemanta]