【正文】 s and investment banks – that were ratcheting up the pay of all business leaders. ? If the unfettered movement of capital, goods and services is going to survive, if there’s not going to be a retreat into national fortresses that could impoverish all of us over the longer term, we’ll have to find a far better way of monitoring global risks and of bringing governments together to deal with these risks. Robert Peston, 8 December 2022 [BBC NEWS] After The Crash: We shall need a New Market! 15 ? Some may see this as a threat to national sovereignty, as the thin end of an antidemocratic wedge that’ll see the world ruled by unaccountable bureaucrats. Reconciling our political traditions with the imperative of making safe the globalised world will be a challenge, to put it mildly. But it’s not a challenge we can shirk. Robert Peston, 8 December 2022 [BBC NEWS] The International Financial Crisis Telling “Slides!” – 2022 From The Washington Post [Next 10 slides are 169。 Increasing Debt/Equity Ratio] ? Decisionmaking power over the management of the assets of the Crown Water Company (Community Assets) will gradually shift from the Community39。The International Financial Crisis The Fall – 2022 The slides – into recession! [How long will it last?] 1 Accountability A well regulated munity or business entity, being necessary to the security of a free society, the right of the people to keep informed and to be armed with bare facts, shall not be infringed. US Constitution, Second Amendment [Amended] 2 The Life of a Turkey TIME SUSTAINING ACTIVITY Thanksgiving Day 3 The Life of a Financial Market Place TIME SUSTAINING ACTIVITY T A BLACK SWAN! CORPORATIONS HOUSES MORTGAGES BONDS STOCKS INVESTMENTS DERIVATIVES (CDOs, CDSs amp。 CMOs) BANKERS’ FEES COMMISSIONS PROFITS 4 If things cannot go on for ever, they will eventually and inevitably STOP! [Herbert Stein – Chairman, President Reagan’s Council of Economic Advisors and Professor of Economics at the University of Virginia] The Life of the Financial Market Place – A Black Swan! An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult to predict. This term was popularized by Nassim Nicholas Taleb, a finance professor and former Wall Street trader. 5 The Corporate Crisis [A Massive Shift of Financial Power] 6 ? In [John Kenh Galbraith’s] New Industrial State, published in an age of low interest rates and easy credit for large corporations (1967), the bank was considered secondary to the large corporation. In my father’s judgment, the bank was too remote from the details of corporate operations to control them effectively ? The high interest rates of the 1980s changed all that. Suddenly, after being secondary for decades, the cost of funds became a predominant consideration for enterprise survival ? Moarism thus made the industrial firm dependent, once again, on its source of finance.. In this way, it reestablished the preeminent power of financial institutions… Wall Street was back in charge. ? The result… was the rise of “shorttermism”. Financial targets were set and had to be met, whatever the implications for the longterm viability of the enterprise. A pany that failed to do so could be punished by a declining stock price and, ultimately, the discipline of a hostile takeover, followed by aggressive disruption of the technostructure. ? Who could survive? [The Predator State: James K. Galbraith] Crown Water Company [High Interest Rates amp。s Managers (its Municipal Government, other Ownership Board or Private Shareholders) to Financial Investors. [Creditrating Entities may also be Involved] ? To protect their investments, the Financial Investors will likely insist on loan conditionality or on increasing control over the Enterprise. ? Such conditionality or management control will almost certainly be designed to engender more adequate internal generation of funds, especially by higher consumer charges and/or improved operational productivity. [The Crown Water Company: David C. Jones] 7 The puter room at King39。 The Washington Post] 16 THE FALLING DARKNESS 17 17 17 169。 The Washington Post] THE FALLING DARKNESS 18 18 18 169。 The Washington Post THE FALLING DARKNESS 20 169。 The Washington Post THE FALLING DARKNESS 22 22 169。 The Washington Post THE FALLING DARKNESS 24 THE FALLING DARKNESS 25 169。 The Washington Post Marketplace Myths (1) Government is, always and everywhere: wasteful, spendthrift, inpetent, inefficient, uneconomical and ineffective Business is, always and everywhere: ethical, frugal, thrifty, petent, efficient, economical and effective Private enterprise can, always and everywhere, operate more efficiently and effectively than a public enterprise. Excuse Me? 27 Marketplace Myths (2) The mercial marketplace can, always and everywhere: allocate resources more efficiently than governments. There is no market failure. Always and everywhere, there is only governmental interference, together with policy and regulatory failure. [Even Federal Reserve exChairman, Alan Greenspan does not believe this any more!] 28 Adam Smith Economics or Adam39。 ? Obtuseness。 Ethics The pseudoscience of economics and the myth of unconstrained economic efficiency. Economics – like tanks and banks – does not care whom it helps and whom it hurts! 31 Efficiency amp。 damages. 32 Hungary: Soviet Military Intervention 1956 33 ? To suppress a demonstration that was reaching an ever greater and unprecedented scale, by 2 . on 24 October, under orders of the Soviet defense minister, Soviet tanks