The Politics of Western Bank Failures

“Public money and public institutions are bailing out a private banking industry that is not solving its own problems… Fundamentally this is a struggle to take a crisis caused by the business community and the governments they support and make the mass of people pay for it. That’s what austerity means. And the real test here is whether the mass of people will absorb it and accept it” –Richard D. Wolff, “The Mating of Our Dysfunctional Political-economic Systems.”

This is a great interview on the repeated political failures in the wake of the failure of economic leaders.

Iceland’s president Olafur R Grímsson: “The difference is that in Iceland we allowed the banks to fail. These were private banks and we didn’t pump money into them in order to keep them going; the state did not shoulder the responsibility of the failed private banks.” Quoted in “Iceland Exits Recession” (Dec 2011).

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