Re: [Marxism] fiasco

["Rakesh Bhandari" <bhandari@xxxxxxxxxxxx>]

I don't understand sartesian's response. If he had something about how
China's savings as a super-fuel played a role in the crisis, that I would
have understood. Guava tree points to the deregulation that allowed for
investment banks to create the originate-and-distribute system, and then
says that the carry trade created by lower rates had nothing to do with
the real estate bubble. But dereg predates the creation of toxic debt in
2004, 2005 and 2006, and even if the carry trade was not behind it, then
surely Greenspan's refusal to enforce capital and lending standards was
behind it. Also, I did not say that low rates were the ultimate cause. I
said Bush wanted a favorable economic context in which to sell the
occupation  (and tax cuts); the only short stimulus he had was a real
estate bubble which the Republicans thus conspired to allow.
So the trillion dollar bailout should be added to the other three trillion
dollars in war cost.
I certainly understand the orthodox theory of imperialism, but I think
there is a good argument here that the US has been hijacked by
representatives of a bloc of capital, those representatives being the
driving force behind Bush's policies. Without doubt the oil and gas lobby
is one of the most  politically and economically powerful forces in world
history.



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