【正文】 n was needed, why there was an important role for government to play in the economy. But many, especially people working in the financial markets, pushed a type of ―market fundamentalism.‖ ? The misguided policies that resulted – pushed by, among others, some members of US President Barack Obama’s economic team – had earlier inflicted enormous costs on developing countries. ? The moment of enlightenment came only when those policies also began inflicting costs on the US and other advanced industrial countries. [Joseph E. Stiglitz] Regulation of Derivatives (1a) The President39。t even know where the corner is. ? Another participant summed up the state of the discussion as we don39。 and we have made it a Den of Thieves Cutthroat Competition 39 “We worshiped in the temple of cutthroat petition, and so some cooked the books, because the treasure is so great.” [Archbishop Tutu] Davos Finds no Answers to Crisis [The World Economic Forum] 40 ? One top money market manager said: If you believe that the world economy will turn the corner at the end of this year, or in [the first quarter] of 2022, I tell you we have not turned the corner, we can39。 he does not consider that the pieces of a chessboard have no other principle of motion besides that which the hand impresses on them。s public debt and 60 percent of loans to businesses and individuals are in foreign currencies, making the country extremely vulnerable to a sinking domestic currency. ? Many home mortgages, for example, were denominated in Swiss francs, as borrowers sought lower rates than they could get at home. ? That raised a danger that house payments would soar if the currency tanked, a danger that was realized as the local currency plummeted, losing 22 percent against the euro from midJuly to midOctober. Weapons of Violence: Tanks or Banks? 35 ―Violence is not just about bombing or shooting or hitting people. Violence is any way we have of violating the integrity of the other. Racism and sexism are violence. Derogatory labeling of any sort constitutes violence. Rendering other people invisible or irrelevant is an act of violence. So is manipulating people towards our ends as if they were objects that existed only to serve our purposes.‖ 169。 Ethics The military tank is a marvel of science and technology. Like the ―science‖ of economics, it very efficiently (but indiscriminately) controls, supports, kills, wounds, destroys amp。 ? Unwillingness to Rock the Boat. [Paul Krugman (Nobel Economics Laureate): Address to the National Press Club – 19, December 2022] Efficiency amp。s Myth Economics? ? US President Gee W. Bush has admitted (2022) that the financial system needs reforming, but insists that the credit crunch was not a failure of the freemarket system. ? Question: What the hell WAS it the failure of, then? Excuse me? 29 Adam Smith Economics or Neoics? 30 Enron, WorldCom, etc. Madoff The US Economy The Global Economy Never Underestimate: ? Stupidity。 The Washington Post 26 169。 The Washington Post THE FALLING DARKNESS 23 169。 The Washington Post THE FALLING DARKNESS 21 169。 The Washington Post THE FALLING DARKNESS 19 19 19 169。 The Washington Post From The Washington Post [Next 7 slides are 169。s College Cambridge, is named after Alan Turing, a student there in 1931 and a Fellow in 1935 8 Computers – fathered by Turing are now ubiquitous, notably in accounting, finance and investment. Mapping the Future 9 [County of Cambridgeshire UK.] [What has This to do With Anything?] Alan Turing, father of puters, went to King’s College, Cambridge, England The International Financial Crisis The Fall 2022 10 Newmarket Six Mile Bottom Cambridge The Crash Six Mile Bottom 1954!! 11 Type: English Electric Canberra Operator: RAF 231 OCU Registration: WD981 C/n / msn: 71051 Fatalities: Fatalities: 3 / Occupants: 3 Airplane damage: Written off (damaged beyond repair) Location: .5 mile W of Six Mile Bottom, Newmarket, Cambridgeshire, England After The Crash: We shall need a New Market! 12 ? There are reasons to believe that credit from taxpayers can’t and won’t be repaid for many years, in that this credit is financing the correction of huge financial and trading imbalances between the western and eastern economies. ? We’ve witnessed a semipermanent nationalization of the banking system and will soon see significant taxpayer support for real panies in the real economy. ? Thus, our banks and privatesector panies will have to work much harder to sustain the goodwill of those who are keeping them alive: millions and millions of taxpayers. Robert Peston, 8 December 2022 [BBC NEWS] After The Crash: We shall need a New Market! 13 ? The biggest lesson of all is that we are a million miles from having created the political and regulatory institutions to help us contain the risks of globalization. We and most of the world may well have been beneficiaries of the open global economy. But as millions lose their jobs in Europe and the US in the ing year, the benefits will be fotten. ? That means that those running our biggest mercial businesses will have to be more visible. They’ll have to manifest a genuine understanding not only of the anxieties of their employees but of all taxpayers. Those chief executives who succeed will be those who imbue in their businesses very simple, monsense standards of decency. Robert Peston, 8 December 2022 [BBC NEWS] After The Crash: We shall need a New Market! 14 ? They’ll almost certainly be paid less for doing more, because the pricking of the debt bubble has undermined the institutions – the privateequity firms, hedge fund