As the global economy plunges deeper into crisis, people everywhere are facing home repossessions, unemployment, pay cuts and rising prices. The very same governments that for decades extolled the virtues of unfettered market forces, have committed the ultimate U-turn by promising billions of taxpayers’ money for bailing out ailing financial institutions. This, they argued, was necessary to avert a complete economic meltdown on the scale of the 1930s. But before the full horror of crisis unfolded, some speculators and hedge fund managers, who gambled on the chaos big style, have pocketed the cash and disappeared merrily off into the sunset.
We are told that this latest financial crisis was caused by a combination of mounting unserviceable debt, greedy bankers and the collapse of the American sub-prime mortgage market. But this is only half the story. As many are coming to realise, cycles of boom and bust are part and parcel of capitalism itself.