On Sun, Sep 28, 2008 at 7:28 AM, Doyle Saylor <[EMAIL PROTECTED]> wrote:
> Greetings Economists,
> On Sep 28, 2008, at 6:22 AM, Doug Henwood wrote:
>
>> So how does this apply to the Scandinavian banking crises of the early
>> 1990s? Did they displace it onto the U.S. 15 years later? Or Greenland and
>> we all missed it?
>
> Doyle;
> Or Argentina, or Turkey, or Russia, on and on.  This indicates a global
> aspect of the crisis rather than a focus on just U.S. systemic problems.
>  The obvious answer is that until it reaches the U.S. it is regionalized
> problems ignored so long as it is contained.

I agree. Doug, if you read Patrick's post, he already dealt with your
question -- explaining that not all crisis episodes have been so
displaced. "To be sure, some of the problems faced by capitalism have
not been simply stalled and shifted around. Some vicious hits - asset
devaluations - have occurred in different sites over the past 30
years." However, as Doyle points out, they have been contained
regionally. Think of Japan, even.

The USA is not Japan, though, and it is not Sweden. The USA is home of
the Dollar (last time I looked) and so it's not clear what containing
this crisis regionally could possibly mean.

Reading the New York Times and the Globe and Mail over the last week
-- not Marxist critics -- the theme keeps being repeated that "this
time its different" and that the moral hazard of a systemic bailout
can no longer be treated as a unanticipated side effect. Moral hazard
was a "feature not a bug" of previous, limited bailouts. The coming
bailout, though, is forced to confront moral hazard, at least
seemingly.

-- 
Sandwichman
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