"Industrial capitalism" refers to the manufacture of stuff
-- cars, shoes, toothbrushes, condoms, TVs, pig iron. Stuff."Finance capitalism"
refers to stocks, bonds, financial instruments. Numbers. Concepts. Abstract intangibles. Anti-stuff
, if you will.
Financial capitalists got us into our current mess. You can't blame the industrial capitalists, and you can't blame labor (unless you've been programmed by ideology to do so).
Obama, like Bush, clearly loves the financial capitalist and hates the industrial capitalist. How do I know? Because he is taking a hard-nosed attitude toward what remains of the U.S. auto industry, as proven by the O-team's request for the removal of GM head Rick Wagoner
GM had been seeking as much as $16.6 billion in new U.S. loans after an initial installment of $13.4 billion.Worse
“It’s very hard for the government to write a big check without giving some evidence of change,” said John Casesa, managing partner at New York-based consulting firm Casesa Shapiro Group. “This will also give the government moral authority with the other stakeholders to make them sacrifice.”
The Obama administration autos task force on Monday rejected the turnaround plans of General Motors Corp (GM.N) and Chrysler LLC and warned both could be put through bankruptcy to slash debts.
Ah, but in the world of finance capitalism, things are very diffo. Obama and Geithner demand no "evidence of change." They do not ask for any resignations. Edward Liddy, the CEO of AIG, still has a gig, and he probably will keep that gig as long as he pleases.Ian Welsh
gets it right: Barack Obama would rather chew razor blades than re-organize and regulate financial capitalism. He will not reinstitute Glass/Steagall, he won't break up the big banks, he won't investigate fraud, he won't limit leverage, he won't reinstitute Reagan-era progressive tax rates.
GM lost $82 billion over the past four years. That's a lot of money -- until you look at Wall Street. The financial "industry" has blown right through the $700 billion TARP funds in mere months. And what did we get? Are we better off?Joan Walsh
of Salon is starting -- just starting -- to wake up:
I think Krugman is alarmingly right on the key issue at hand: Treasury Secretary Timothy Geithner's subsidizing private investors to take can't-lose "risks" and buy up the banks' "legacy assets." (Don't call them toxic!)
Krugman has colorfully labeled the plan "cash for trash"...
On Wall Street, no "asset" is so toxic as to be unworthy of American taxpayer support. Meanwhile, in Detroit, those working within the American car industry are being treated the way the Waffen SS treated Russian Jews: They have been ordered to dig their own graves and hop in.
How long will Wall Street be able to play its silly games if America no longer makes
In the 20s, fascist economic theorists such as Gottfried Feder posited a simple argument: Industrial capital is good, finance capital is bad.
Today, Obama and Geithner argue the exact reverse: Finance capital is good, industrial capital is bad. Both ideologies are dangerous because neither seeks balance
Fascism could not destroy this country. Obamaism might just manage the trick.Update:
Have you noticed that progs spend an awful lot of time blaming the repeal of Glass-Steagall
on Bill Clinton yet they refuse to spend ten consecutive seconds pressuring Obama to restore the old regulations? Why is
that, I wonder?