Markets, Mobs and Social Mayhem

Reb highlighted the following article this morning and history would suggest that the potential for the type of fallout that  goes far beyond the financial and economic realms:

Waleed Aly, a lecturer in politics at Monash University writes:

The most lasting fallout of the global financial crisis is unlikely to be economic. This is the nature of true financial disaster: in the long run it brings down ideas, recasts societies and redistributes power in a way that resonates far beyond its lifespan. One day, the markets will stabilise and even recover, but the political terrain will likely be altered irrevocably.

Some ideological consequences are relatively obvious. Many commentators have already written obituaries for the creed of zealous deregulation that has prevailed throughout the Western world and especially in America. Indeed, that the Australian Government faces pressure to guarantee bank deposits establishes emphatically that people still want their governments to protect them, and are simply not soothed by promises of “market correction”.

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