Samstag, 11. Oktober 2008

Deregulation - wars - bank crisis

Digg blog of all posts too - Change for better world - Wandel fuer bessere Welt Digg it

Normally this should be known since hundred of years: - without regulation a lot of banks will fall for profit!
The end is always the same, like Bush McCain would be the same too - we, the world need change!

Greed, which goes over corpses

by Lewis W. Hine, New York 1935. picture: reuters

  • You could find a lot of articles about this in Germany some weeks ago. Some sources were coming from a link of Schiller Institute, you can read yourself in clicking onto the picture.

So something about banks and money should be known since hundred of years. "The crash, which peaked in A.C.E. 1345 when the world’s biggest banks went under, “led” by the Bardi and Peruzzi companies of Florence, Italy, was more than a bank crash—it was a financial disintegration."

And with the tulip mania too, which gripped Holland in 1637, the innovativeness of the investment was decisive for the success of the creative transfer of capital. Since the Middle Ages, the story of capitalism knows the high flyings of the speculators as well as the worries of sudden impoverishment.

Had there, centuries ago - and since then again and again - not been banking and stock market crashes, then banking houses like the Bardi, Peruzzi, Accaiuoli would still exist today. The crash of the Bardi and Peruzzi, for example, which ruined entire national economies in 1345, bears not-so-surprising congruencies to the Wall Street investment bankers of the fatal early autumn 2008 - it's the same greed, but of course the technical methods may have radically changed. But a lot was similar: A bank like the House Peruzzi reached astonishing dimensions in its time and, in fifteen offices from Rodos to London, kept the vital communication about interest, harvests, wars, changes of government and prices. ... England bled to death, and the banks made marvelous profits for a while, but in the end the King was so deeply indebted to the Bardi and Peruzzi, that his and his countries inability to pay ended in the crash.

A lot is really similar: "You can draw parallels to the alleged global power of the United States, who can keep ready a war machinery for trillions and fire it worldwide as required, but cannot offer medical supply and adequate schools to poor children at home."

But this is part of problem too: The articles in Germany finished with end of tulip mania of the Netherlands, but this was and is different. ".. the plaintiffs among the stock brokers, who demanded juridical and financial help from the state, were outmaneuvered by the law of the Dutch Republic in a clever way. The asset acquisition, the tribunal determined, had been done under conditions of mental incapacity[i.e. insanity]. Such business - not different from dog-fighting or lotteries - is part of compulsive gambling and thus not protected by any law." And the conclusion of articles was: "Would American courts today muster that much pragmatic wisdom?" - But here is a big difference: ".. only a restricted elite had participated in the mania [tulip mania]. The rest of the country had not, and its businesses was continuing to go well. He ends the article in the following way..".

What must be the conclusion?: You cannot allow banks and other part of capitalism fall for profit and so lead all, big parts of the world, to financial disintegration. Very important things need always strong regulation! I can only hope the neocons are bankruptcy too! But if there is more behind, like if capitalism has problem to make enough profit already and so is using bubble economies, there would be a need for more like a small article. Here you could only see, that there isn't any need for more new problems of capitalism to get a financial disintegration! This should be known since hundred of years! Bubble economies and greed of bankers cannot solve any problem, it can only lead to this we are knowing already. (About the wars: It is very important all will come out ones what is connected with destroying of World Trade Center or huge amounts of money, lives and nature are wasted with these wars.)