Ipa 2019-finance lecture

2. [Lehman collapse, 15 September 2008 - headlines 16 Sep 2008]

27. Over the last quarter of a
century something
fundamental seems to
have changed in the way
in which capitalism works.
The tendency since 1970
has been towards greater
geographical mobility of
capital.

28. Rather than being a modest
helper to the capital
accumulation process,
[finance] gradually turned into
a driving force.
Speculative finance became a
kind of secondary engine for
growth given the weakness in
the primary engine, productive
investment.

80. 80
Is there an alternative solution?
• The crisis gives an opportunity to disarm
financial capital and regulate the markets
• The public sector should be used to damp the
effects of the crisis and stabilise the economy
• A radical redistribution of wealth is necessary
• Only the trade union movement has the
potential to push solutions in this direction
• Potential is one thing, practice something else
– a formidable mobilisation will be necessary