So to the east of the Atlantic the formulas underpinning recapitalisation seem to be about replacing old discounted capital with current capital backed by national tax income.
This is used to stabilise mass accommodation even though the value of the mortgages is discounted, and to guarantee the value of private deposits. The BBC business editor, Robert Peston, has also come up with his own plan to use national coordination of state pension funds, to buy preference stakes in recapitalised banks. This is not the death of market capitalism, which will have considerable scope to make profits again once economic circulation resumes on what has in reality become a smaller capital base. Meanwhile that restructuring could entail major formal socialisation of a large part of the economy with a substantial wave of increased social accountability, eg financial executives treated as members of the privileged intelligentsia, rather than as Capital Incarnate. The job to recover from depression will have been done - destruction of a significant proportion of old capital. Chris Burford _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
