The Neoliberalism ship badly stranded and the “wise guys” of the global financial elite are in a helpless manic-depressive situation. This picture was more or less foreseen by the thinkers of our age almost a century ago but the smart-ass “experts” of the post-war era were so over-confident that they thought they could keep the veins in hand even under the worst circumstances, by injecting the rules of a “financial religion” they called the “global capitalism.” The greed and the bigotry of the international finance-capital finally led the world economy to a total collapse – and alas, the worst is not over yet.

Walden Bello, a Foreign Policy In Focus columnist and professor of sociology at the University of the Philippines, analyzes the present situation thoroughly in a Q & A style. (I recommend the original article at the source site.)

We’re seeing the intensification of one of the central crises or contradictions of global capitalism: the crisis of overproduction, also known as overaccumulation or overcapacity.

In other words, capitalism has a tendency to build up tremendous productive capacity that outruns the population’s capacity to consume owing to social inequalities that limit popular purchasing power, thus eroding profitability.

clipped from www.fpif.org
Did greed cause the collapse of global capitalism’s nerve center?
Good old-fashioned greed certainly played a part. This is what Klaus Schwab, the organizer of the World Economic Forum, the yearly global elite jamboree in the Swiss Alps, meant when he said in an interview earlier this year: “We have to pay for the sins of the past.”
Was this a case of Wall Street outsmarting itself?
Definitely. Financial speculators outsmarted themselves by creating more and more complex financial contracts like derivatives that would securitize and make money from all forms of risk — including such exotic futures instruments as “credit default swaps” that enable investors to bet on the odds that the banks’ own corporate borrowers would not be able to pay their debts
Was it lack of regulation?
Yes. Everyone acknowledges by now that Wall Street’s capacity to innovate and turn out more and more sophisticated financial instruments had run far ahead of government’s regulatory capability
The below clip is from The Guardian, reporting the recent “sale boom” of Karl Marx‘s works in Germany. Especially, Das Kapital. The news story tells that young and well-educated Europeans turn to Marx again, after seeing the recent financial disaster and its global consequences. Say goodbye to Neoliberalism, pals… But you had been told about this more than a century ago – not to mention V. I. Lenin‘s later contributions in early 1910’s, with his masterwork on finance-capital and imperialism, largely based on Hilferding‘s analysis.
clipped from www.guardian.co.uk
Karl Marx is back. That, at least, is the verdict of publishers and bookshops in Germany who say that his works are flying off the shelves.
The rise in his popularity has of course, been put down to the current economic crisis. “Marx is in fashion again,” said Jörn Schütrumpf, manager of the Berlin publishing house Karl- Dietz which publishes the works of Marx and Engels in German. “We’re seeing a very distinct increase in demand for his books, a demand which we expect to rise even more steeply before the year’s end.”
Most popular is the first volume of his signature work, Das Kapital. According to Schütrumpf, readers are typically “those of a young academic generation, who have come to recognise that the neoliberal promises of happiness have not proved to be true.”