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Just out of curiosity, what does a bust of the economy look like? Does anyone know? Who gets hurt? Right now it seems like the victims of the system are the only ones getting hurt under the current scheme. So, if the economy does go bust and everyone gets hurt, then that seems like the fairest system. Right now, the way it is rigged, everyone but the casino banks get hurt.
by Magnifico on Thu Nov 25th, 2010 at 07:41:20 AM EST
I'm actually a little worried about Cohn-Bendit's "it's complex", "it's a system being rescued" and "the whole economy would suffer".

He criticises neoliberalism and deregulation, but to him still there is no alternative.

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010

by Migeru (migeru at eurotrib dot com) on Fri Nov 26th, 2010 at 04:13:59 AM EST
[ Parent ]
European Greens Party: Financial Crisis
In this context, the EGP puts forward the following propositions for consideration:

In the short term, Governments have no other choice than to take action in order to prevent the collapse of the banking system by providing state guarantees or injecting capital, using taxpayers' money. Because at the same time, Governments find billions to save banks that are responsible for their problem, while they can't find the funding needed to fight starvation, unemployment, environmental degradation, the loss of biodiversity and to fund development aid, this rescue is not legitimate if not counterbalanced by a number of measures
<sigh>

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010
by Migeru (migeru at eurotrib dot com) on Fri Nov 26th, 2010 at 04:25:34 AM EST
[ Parent ]
The document is from October 2008; perhaps Green economic policy has matured in the intervening two years.

Further, as you didn't highlight, "this rescue is not legitimate if not counterbalanced by a number of measures," so we should first investigate the counterbalancing measures. (posted in full, as it's a public doc.)

No wait, it deserves a diary.

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin

by Crazy Horse on Fri Nov 26th, 2010 at 05:10:02 AM EST
[ Parent ]
Knock yourself out :)

EGP: Economy

A green economic vision for Europe

The full document and translations in DA, DE, ES, FI, FR, GR, HU, IT, MT, NL, SV



Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010
by Migeru (migeru at eurotrib dot com) on Fri Nov 26th, 2010 at 05:16:23 AM EST
[ Parent ]
To be Fair and Accurate™, that's two years old (though it may still be their position).

The measures they go on to suggest are:

  • drastic reduction of financial exec and trader remuneration
  • Tobin tax
  • financial instruments to be accredited by a European testing agency
  • ban on naked short selling
  • mark to market valuation to be "reformed"
  • accreditation, transparency, control of hedge funds to be "tackled" at European level
  • tax havens to be closed, tax fraud and evasion prevented
  • delay on new investors' voting rights (presumably anti-LBO)
  • all financial institutions to contribute to a reserve fund guaranteeing deposits up to €100K
  • restriction of off-balance-sheet accountancy
  • establishment of an independent European ratings agency
  • creation of a European financial markets watchdog with teeth
  • EU-level coordination to diminish the effects of finance sector crisis on other sectors of the economy
  • anti-cyclical budgetary measures
  • "sufficient liquidity must be provided by the European Central Bank"

That wasn't a bad list, two years ago. Now some of it may look like the stable door after the horse has bolted.
by afew (afew(a in a circle)eurotrib_dot_com) on Fri Nov 26th, 2010 at 05:20:37 AM EST
[ Parent ]
afew:
To be Fair and AccurateTM, that's two years old (though it may still be their position).
To be fair, I went to their website looking for their position on the financial crisis, or press releases, or news about Cohn-Bendit's remarks... and I found that the most recent position is from 2008...

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010
by Migeru (migeru at eurotrib dot com) on Fri Nov 26th, 2010 at 05:23:10 AM EST
[ Parent ]
Entirely agree. The Greens/EFA site is no better. Though DCB appeared to be at a press briefing in Strasbourg, there's no corresponding press release.
by afew (afew(a in a circle)eurotrib_dot_com) on Fri Nov 26th, 2010 at 05:57:44 AM EST
[ Parent ]
Oh, and the European United Left/Nordic Green Left site is even worse on economic policy generally and the financial crisis in particular.

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010
by Migeru (migeru at eurotrib dot com) on Fri Nov 26th, 2010 at 06:01:00 AM EST
[ Parent ]
Notice the post timing. Now found in separate diary Here.

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin
by Crazy Horse on Fri Nov 26th, 2010 at 07:43:01 AM EST
[ Parent ]
I don't know what he thinks personally - I understood he was speaking as co-leader of the Greens/EFA in the EP. They seem to have agreed that their communication would focus on "the failure of neoliberalism and deregulation", which is a big, clear point that doesn't seem easy to deny at the moment, rather than to argue against propping up the banks, which could lead to complicated technical counter-arguments and certainly be opposed by the general agreement that the economy would grind to a halt if not.

But this is my imagination at work, they may simply be incapable of conceiving of an alternative.

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Nov 26th, 2010 at 05:01:39 AM EST
[ Parent ]

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