I am mystified that governments aren't calling the banks' bluff
When asked whether he would implement a Nama-style bailout for the banks, he responded: ``No, this is the kind of highway robbery which we see happening all over the world, with guns pointing at the heads of the political leaders and the bankers claiming the sky will fall down and the economy will be devastated unless they get this money."
What is going on? Is everyone with a degree in economics incapable of thiking outside the mental-capture box? En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
I do not have the Shock Doctrine at hand right now but I think it was in Bolivia that an incoming leftist government started with an extreme project of privatization. This was started as soon as the leftist president was elected, by inviting him and his closest to a small conference with the richest people in the country and their pet economists. There it was explained that crises was bigger then expected and a radical project was needed to avoid complete collapse. Fortunately the economists had a plan ready to go.
The president and his closest men were convinced and when at the first meeting of the new cabinet they dropped the program on the table and declared that this was the plan and anyone that did not agree could resign as minister right there and then. (The sources was interviews some 15 years later with some of the ministers.)
Generally, the stick is the threat of economic collapse, the carrots are access to markets, capital (in the form of credits) and also personal economic success for the key persons (how much so depending on the level of corruption).
If anyone have not read the Shock Doctrine by now, you really should. A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!
