RE: [OPE] The micro dimension of the Financial Crisis.

Date: Sat Nov 08 2008 - 07:39:27 EST

> Even more, it revels that behind the financial instruments called “derivatives”, rests the minds of
> mathematicians and physicists that built complex mathematical models that at the end reveled
> incapable of modelling human conduct.
Hi Alejandro:
What the mathamatical models were incapable of revealing, rather, was *market behavior*.
Without markets and capitalism (or 'market socialism'), the problem disappears.
The news story itself, I thought, was extremely shallow in its analysis. It simply
took the liberal economic perspective on the crisis: it was due to "greed",
"incompetence", and the lack of regulation. Hence, the crisis could have been
easily avoided and is remedied by more "competent" state policy.
Yet, this presents Marxians with a challenge - to explain in simple language
understandable to all that the causes of the crisis are deeper and that what
is needed is an anti-capitalist solution or else the resolution of the
crisis will be paid for at the expense of the working class.
In solidarity, Jerry

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Received on Sat Nov 8 07:47:52 2008

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