Guardian UK: Are we heading for a second global financial crisis?

[marmar]

Are we heading for a second global financial crisis?
States must be courageous enough to bring the world of feral finance under control and back into the real economy

Richard Murphy for Tax Research UK, part of the Guardian Comment Network
guardian.co.uk, Wednesday 3 August 2011


How far are we from #gfc2? For those not aware, #gfc2 is the Twitter hashtag used for "global financial crisis 2". And the question I ask is a real one.

A couple of weeks ago I wrote a blog wondering whether July 2011 felt like July 1914. And then along came a Greek deal, and now a US debt deal, and you might presume I had been prematurely melodramatic.

I wish that were true; I very much doubt it is.

Just to put this in context, the Guardian has reported that:

"Stock markets took fright on Wednesday as fears grew over the health of the global economy and the ongoing European debt crisis.
There was heavy selling in London when trading began, sending the blue-chip FTSE 100 index falling by 91 points, or 1.6%, to 5626. There were also heavy losses across Europe, The French CAC and German DAX indices were down 1.6% and 1.1% respectively.
The European markets took their cue from Tuesday's 2.2% fall in the US Dow Jones index. Overnight, the Japanese Nikkei fell 2.1%, its biggest daily loss since the rout that followed Japan's March earthquake."

.....(snip).....

But does that mean a new global financial crisis is likely? My answer is a very simple "yes". And the reasons are not hard to find. ............(more)

The complete piece is at: http://www.guardian.co.uk/commentisfree/2011/aug/03/second-global-financial-crisis

[xchrom]

1. Recom

[Chimichurri]

2. I smell QE 3 and a fresh round of bailouts coming right up.

[Donnachaidh]

3. the banksters are like meth addicts -- they haven't gotten all the cash yet

So they keep pushing to get more bailouts.

[blkmusclmachine]

4. I believe that's the intent.

n/t

[dissidentboomer]

5. Yes. The indicators certainly say so - from currency devaluations to significant downturns in

production in China and India - not to mention inflation in both of those countries and a significantly over built housing market in China. To ensure that it occurs, we have a US government and economy now managed by global pirates, completely corrupt, greedy politicians, and lunatic asylum escapees who have ensured us that we have a government debt crisis and NOT an employment and lack of domestic business incentive crisis. Take a look at how the stock market reacted to this GLORIOUS debt deal and you tell me what kind of crisis THEY think we have.... and the answer ISN'T "debt crisis". :rofl:

Again, yes, and there are almost no tools left to avert it.

[HCE SuiGeneris]

6. K & R

[dgibby]

7. Yes we are, like a runaway freight train down a mountain.

I'm guessing it won't stop with a recession this time.

[rhett o rick]

8. The greed crazed capitalists are all trying to get the last of the golden eggs before the goose is

completely dead. We are beyond the tipping point.

The Revolution Is Waiting.

[Doctor_J]

9. Yes, and the entire world should be blaming the teabaggers

and their hate radio/Fox "News" propaganda factory. Now get the fuck over here and help us eliminate them.