Global Capitalism: Ready for the ‘Shrink or Sink’ - Financial Times Deutschland
September 18th, 2008
By WILLIAM KERN
Print
‘Don’t Panic’
So what is one to make of what is being described as a ‘global financial meltdown?’
The sense one gets from Europe - particularly the Germans - is that while things are grim, and while this may mark the end of an ‘entire phase of capitalist development,’ - this isn’t the end of the world. In fact - it’s all for the best.
For Germany’s Financial Times Deutschland, Lucas Zeise writes in part:
“The world doesn’t need as many large investment banks like Merrill Lynch and Lehman. … Here’s one way to look at the financial crises: out of the five major U.S. investment banks, only two remain. That’s capitalism. A major crash follows the biggest financial boom. The institutions that drove the boom - a good deal of the time - go over the Wupper - or over the Hudson. [In German, an expression for “going bankrupt” is to “go over the Wupper,” which is a river in Germany]. So is the adjustment over? It’s probably just the beginning.”
The bankruptcy of Lehman Brothers; the acquisition of what was the largest American broker, Merrill Lynch, by the Bank of America; and the way the once greatest insurer on earth - AIG - has had to beg the U.S. Federal Reserve for help; and the nationalization of mortgage financiers Fannie Mae and Freddie Mac - all of these dramatic events within the shortest possible time, herald the second phase of this great financial crisis. It is now clear that this crisis, which began with problems in the subprime mortgage sector, will probably bring to a close an entire phase of capitalist development.”
By Lucas Zeise
Translated By James Jacobson and Ulf Behncke
September 16, 2008
Germany - Financial Times Deutschland - Original Article (German)
The U.S. Central Bank [the Federal Reserve] did the right thing by commencing a correction of the finance sector with the Lehman bankruptcy. The world doesn’t need as many large investment banks like Merrill Lynch and Lehman.
Here’s one way to look at the financial crises: out of the five major U.S. investment banks, only two remain. That’s capitalism. A major crash follows the biggest financial boom. The institutions that drove the boom - a good deal of the time - go over the Wupper - or over the Hudson. [In German, an expression for “going bankrupt” is to “go over the Wupper,” which is a river in Germany]. So is the adjustment over? It’s probably just the beginning.
The bankruptcy of Lehman Brothers; the acquisition of what was the largest American broker, Merrill Lynch, by the Bank of America; and the way the once greatest insurer on earth - AIG - has had to beg the U.S. Federal Reserve for help; and the nationalization of mortgage financiers Fannie Mae and Freddie Mac - all of these dramatic events within the shortest possible time, herald the second phase of this great financial crisis. It is now clear that this crisis, which began with problems in the subprime mortgage sector, will probably bring to a close an entire phase of capitalist development.
READ ON AT WORLDMEETS.US, along with continuing translated foreign press coverage of the unfolding global financial crisis.
This entry was posted on Thursday, September 18th, 2008 at 1:06 pm and is filed under Cartoons, Psychology, Columnists, Germany, Wall Street, Legal Matters, Federal Reserve, Newspapers, Foreign Policy, Corporations, Cartoon Commentary, Domestic Programs, Money/Finance, Law & Legal Matters, History, Economy, Europe, Political Cartoons, Legislation, Foreign Affairs, Business. You can leave a response, or trackback from your own site.
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