Paul Krugman is one of the leading economists of our time and an author of several books about crashes and the economy. he is a Nobel prizewinner and someone who knows all about the American machine economy and how if functions to only benefit the already well off in life. His book "The return of depression economics'' and the crisis of 2008 is a great read for understanding to how the economy tanked. Throughout the book Krugman says there were many warnings a crisis was about to hit and indeed several analysts predicted such. Krugman reports of the crisis that hit Latin America and Asia in the late nineties and how it took a decade for America to experience one. How once booming economies can go to calamity overnight should surprise no one.
Those capitalists who felt grandiose after the fall of socialism considered it a political fact of their superiority system and how it would overtake all ideologies over but in fact it is a system built on collapse and has collapse many times through history. If capitalism ran so functionally and equally for anyone you would never have radicals in society. Colonialism and globalization have enriched the same folks who selfishly hoard resources and start wars to acquire more. That was the only reason that the West and America got out of the depression of the thirties and as Krugman says it has returned for many people.
Krugman spends a couple of chapters studying why Mexico and Japan's economy stagnated despite a industrious labor force and people. The same factors that led to a reduction of japans growth will occur to China in the coming years a the government spends to improve conditions for a people whose success demands the capital infrastructure improvements. As the society starts to age it will be hard to retain these improvements. The common theme is using bank loans to take risks on edgy investments that would not occur i these investors used their real money. This happened all over Asia and hurt Japan real good. Krugman even mentions how some landlords would buy property at inflated prices just to get good insurance coverage for fires they would thus start. This happens all of the fucking time as we have pointed out at the Left Shark. Paul talks about the loosening of regulation on banks in the mid eighties that have helped cause these crashes all over the world from the corrupt classes. Paul Krugman does an excellent job covering way Asia countries crashed and how their elites helped speculate and exploit their countries as bad as the Western colonialists. Speculators attacks and harmful thoughts of a countries currency also is mentioned in this great economic book as Krugman goes
through Brazil, Hong Kong, Russia, and the British pound crisis of currency. In the last chapters Paul talks a little George Soros and that old ugly geek Alan Greenspan and his bubbles. Jobs have never recovered when Greenspan first cut the interest rates and the end of growth is pretty much assured as long as too bit to fail banks are the insurance for the economy and country. This book ends on the history of banking and the shadow banking system that is fully operational to this day and its role in starting a new depression ere for many people in the world today.
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