Even if credit institutions recover confidence in lending each other, it is not likely that they are going to start lending to people again soon with the same relaxed attitude. (28) Because the drain on wages was not/ and could not used to invest more, extra profits were accumulated in the financial sector.
... that triggered the 2008 financial crisis, this September. When Ireland’s economy entered into a severe recession in 2008, the government in charge at the time placed much of the blame for the economic collapse on the international financial crisis. The total number of graduates in America is only 60.000. National Intelligence Council Predicts Scarce Resources, Loose Nukes, A Rising China’, CBS News, 20 November 2008, http://www.cbsnews.com/stories/2008/11/20/world/main4622166.shtml59. It is the combination that makes British economy such a credit liability. Today it is not ExxonMobil, Royal Dutch Shell, and the other western companies, but Russia’s Gazprom, CNPC of China, Venezuela’s PDVSA, Brazil’s Petrobras, Saudi Aramco, and Malasia’s Petronas that are seven giant producers. Unlike the oil shocks of the 1970s, this time there seems to be a permanent decline. Ann Pettifor, ‘America’s financial meltdown: lessons and prospects’, 18. All of this, in due course, will offer excellent opportunities to productively spend money and create high-quality jobs. The crisis is destined to bring about fundamental changes in the world economic system. If it is not dealt with properly, the whole system immobilizes. From the war in Iraq to rising food and fuel prices, energy consumption has been a crucial topic. (24) Still, as seen in the figures above, the profit rates never recovered more than about half their previous decline, and even the small booms of neoliberal era ran into serious trouble with a number of serious crises, most significantly, the stock exchange crash of October 1987, and the East Asian financial crisis of 1997 (and its contagious effects on the rest of the world economy). (74) Peter Dicken describes this ongoing process as ‘the changing global economic map’, arguing that ‘old geographies of production, distribution and consumption are continuously being disrupted and that new geographies are continuously being created. But Europe’s banks never truly recovered from the double shock of 2008 and the eurozone crisis. The importance of medium and small-size business will decline still further. The danger is that once governments step in and nationalise banks and take on their entire debt, eventually this debt may be going to be bigger than the whole GDP of the country. Unlike in 2008, there will even be sectors that naturally expand. The result was a consumption boom that has sustained the economy in recent years. By mid-century, India is expected to have 1.6 billion people – and 220 million more workers than China. Many commentators in the media saw the story as ending there, and the only lesson they drew was the urgent need for more financial regulations. ‘Report: U.S. Power Will Fade By 2025. Only then, for a number of reasons, Asian economies lost their position to the West, but it seems only temporarily. This is a structural issue. It is broadly the same toolkit it used in 2008.Preventing a total European meltdown will require the German chancellor to fully abandon her cherished vision for the continent.These are not policies tailor-made for the pandemic. (15) As a result of all these, financial institutions right across the global economic system became afraid to lend each other in case they discovered they could not get their money back. It is not a ‘failure’ of the system, but it is central to the mode of functioning of the system itself. China has already become a major actor in world currency and financial markets. Mortgage Fraud. William A. Dowling, ‘Retirement Imperiled: The Case Of HELOCs’, 38.